EMD might layoff 350-400 employees

[Lyon_Wonder]

EMD layoffs forecast

An order for 40 new locomotives will not be enough to save jobs at Electro-Motive Diesel in London.

The Oxford Street locomotive assembly plant is expected to announce layoffs of 350 to 400 workers soon, Canadian Auto Workers officials said yesterday.

The plant employs about 900 hourly workers.

"We're not even thinking about that order right now," Terry Mason, past-chairperson of CAW Local 27, said of the CN order that was recently announced. "We have been told there will be layoffs."

Electro-Motive officials in London and in its Illinois head office declined comment on the staffing situation at the plant.

 "That is all speculation, we have not announced layoffs," said Bruno Couteille, human resources director at the plant.

But news of the looming job cuts did not surprise Local 27 president Tim Carrie, because orders have been slowing.

"Everyday when I come in to work now I wonder if we will get news of another layoff or closure," said Carrie. "There is pressure on all manufacturing today. It will be a tough 2009."

Todd Ramm, EMD spokesperson, declined comment on the layoffs, but did say London is the only Electro-Motive plant in the U.S. and Canada that does full locomotive assembly. Its Illinois plant builds engines and alternators. EMD has a plant in Mexico that does assembly when there is too much capacity for London, he added.

Keith Berry, CAW chairperson at EMD, could not be reached for comment.

As for the order for the new 40 CN locomotives, it is a new, fuel efficient model called the SD70M-2 and will be delivered in early in 2010. It is expected production will start on the new locomotives in August and comes on the heels of EMD now finishing an order for 25 CN locomotives. EMD can assemble a locomotive in about one day.

"It is all part of the locomotive renewal program we have. This will improve the fuel efficiency of our fleet and reduce emissions," said Bryan Tucker, CN spokesperson.

The new locomotive is about 20 per cent more fuel efficient.

"We are very pleased, we think this is a great investment," he added.

As for the industry itself, the Association of American Railroads reported recently there were 1.19 million loads of freight shipped in the U.S. in November 2008, down 133,504 carloads or 10.1 per cent from November 2007.

The largest load declines in November last year were motor vehicles and equipment, down 25,984 loads or 32.7 per cent; chemicals down 19,621 loads, or 16.3 per cent; metals and metal products down 19,181 loads, or 39.6 per cent; and grain (down 17,134 loads, or 16.6 per cent.

Total volume was estimated at 1.62 trillion ton-miles, down 0.3 per cent from the first 11 months of 2007.