Layoff toll rises to 960 workers
By NORMAN DE BONO, SUN MEDIA
Therm-O-Disc in St. Thomas has announced it is closing in one year, with the loss of 280 jobs. (Derek Ruttan, Sun Media)
The layoff toll in the London area just keeps climbing.
London automotive parts plant Qualtech will chop 50 jobs, just as St. Thomas parts-maker Presstran will lay off 280 workers Monday, Magna International, which owns both plants, announced yesterday.
The news comes one day after Therm-O-Disc in St. Thomas announced it is closing in one year, cutting 280 jobs, and Dana Corp. in St. Marys issued layoff notices to about 350 workers as it prepares to mothball that plant.
The toll is a stunning 960 jobs lost in the city and region's manufacturing sector in only two days.
"We are taking a hit, definitely we are taking a hit," Dave Kerr, president of the St. Thomas and District labour council, said yesterday. "We are losing jobs here and we have to start fighting to keep them."
Qualtech, which makes seats for Cami Automotive in Ingersoll, has cut the jobs effective April 21 because Cami has gone to two shifts, said Tracy Fuerst, director of corporate communications at Magna International.
In addition, Presstran has had to cut jobs as a result of the American Axle strike in the U.S. which has shut down GM plants, so other suppliers to the automaker, such as Magna, are also impacted.
Last month, Formet, also in St. Thomas, laid off 1,200 as a result of the American Axle strike.
"This is a real setback," said Bob Hammersley, president and chief executive of the St. Thomas Chamber of Commerce. "Our first concern is the people. It is not just about paycheques, but about their lives. This is felt throughout the community. These people buy groceries, make car and mortgage payments, it hurts everyone."
But Presstran and Formet will recall workers once the American Axle strike is settled. Still, the strike is the last thing the industry needs -- it has been hurt by slumping sales of U.S. vehicles and the strong Canadian dollar, said Scott Turner, executive vice-president of Presstran and Formet.
"The strike is dragging on now and it is damaging everyone, including this company. It is now problematic," said Turner.
"We have to find a way to buckle down and make a better product. I still think Ontario can be competitive, but we have to get focused on our costs."
Therm-O-Disc, in business since 1961, announced it is closing its plant in March 2009 to keep the company "globally competitive."
It has excess capacity in St. Thomas, said Dave Baldridge, a spokesperson.
"It's a result of tough economic pressures and not a reflection of the employees who have performed well for many years," said Baldridge, adding the site will be sold.
St. Thomas has been hit with A. Schulman Inc. closing this year, cutting 120 jobs, and more than 120 have been laid off at Lear Seating. Sterling Truck has also laid off about 650.
Therm-O-Disc in St. Thomas has announced it is closing in one year, with the loss of 280 jobs. (Derek Ruttan, Sun Media)
The layoff toll in the London area just keeps climbing.
London automotive parts plant Qualtech will chop 50 jobs, just as St. Thomas parts-maker Presstran will lay off 280 workers Monday, Magna International, which owns both plants, announced yesterday.
The news comes one day after Therm-O-Disc in St. Thomas announced it is closing in one year, cutting 280 jobs, and Dana Corp. in St. Marys issued layoff notices to about 350 workers as it prepares to mothball that plant.
The toll is a stunning 960 jobs lost in the city and region's manufacturing sector in only two days.
"We are taking a hit, definitely we are taking a hit," Dave Kerr, president of the St. Thomas and District labour council, said yesterday. "We are losing jobs here and we have to start fighting to keep them."
Qualtech, which makes seats for Cami Automotive in Ingersoll, has cut the jobs effective April 21 because Cami has gone to two shifts, said Tracy Fuerst, director of corporate communications at Magna International.
In addition, Presstran has had to cut jobs as a result of the American Axle strike in the U.S. which has shut down GM plants, so other suppliers to the automaker, such as Magna, are also impacted.
Last month, Formet, also in St. Thomas, laid off 1,200 as a result of the American Axle strike.
"This is a real setback," said Bob Hammersley, president and chief executive of the St. Thomas Chamber of Commerce. "Our first concern is the people. It is not just about paycheques, but about their lives. This is felt throughout the community. These people buy groceries, make car and mortgage payments, it hurts everyone."
But Presstran and Formet will recall workers once the American Axle strike is settled. Still, the strike is the last thing the industry needs -- it has been hurt by slumping sales of U.S. vehicles and the strong Canadian dollar, said Scott Turner, executive vice-president of Presstran and Formet.
"The strike is dragging on now and it is damaging everyone, including this company. It is now problematic," said Turner.
"We have to find a way to buckle down and make a better product. I still think Ontario can be competitive, but we have to get focused on our costs."
Therm-O-Disc, in business since 1961, announced it is closing its plant in March 2009 to keep the company "globally competitive."
It has excess capacity in St. Thomas, said Dave Baldridge, a spokesperson.
"It's a result of tough economic pressures and not a reflection of the employees who have performed well for many years," said Baldridge, adding the site will be sold.
St. Thomas has been hit with A. Schulman Inc. closing this year, cutting 120 jobs, and more than 120 have been laid off at Lear Seating. Sterling Truck has also laid off about 650.
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