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London, Ont EMD plant closure? Locked

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Posted by cat992c on Friday, December 30, 2011 8:57 PM

I am sure that Muncie will welcome them with open arms if the plant north of the border is closed

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Posted by creepycrank on Friday, December 30, 2011 4:28 PM

The union just voted to strike so CAT doesn't have to be bothered with locking them out. This is probably then end of production in Canada.

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Posted by edbenton on Thursday, December 29, 2011 11:19 PM

Don't be so Sure CAT could not meet demand by closing London.  One they could Expand Production at MPI easily 2 they have other Progress Plant scattered all around the Nation 3 CAT themselves wants to Break teh UAW here in the USA why did they give the UAW all they wanted in the last Contract however the UAW had to allow CAT if they wanted to MOVE ANY and ALL Facilaties here in the USA to other States in the USA without Complaints Failure to do so and CAT was Prepared for one HELL OF A STRIKE LAST YEAR and This YEAR.  Why do I know this A member of my Reef Club that was teh Second in Command of the CAT Parts Warehouse in Morton IL well She was Transferred to SC why to setup a NEW one 4X the size that can handle all the needs of CAT in the Nation and also is going to be the ONLY one in teh USA.  She also got a Promotion to Head of Logistics of CAT NA Production.

 

She told us at teh Reef Club that CAT will be out of the Stateof IL in less than 5 Years teh Length of the Current UAW Contract and they are building new plants in SC GA and NC that will blow away anything Kumautso has here in the USA. 

 

 

 

 

 

 

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Posted by toad hollow on Thursday, December 29, 2011 9:49 PM

That wage offer is only 5.00 above minmum wage so most of the skilled workers can get other jobs even if they have to move. Some companies are just anti union period. USS Steel locked out the best quality steel  plant in the world until Toyota said they didn't want the poor quality product from Gary Indiana anymore. Didn't meet the specs for Toyota. Lockout  and/or close London and it appears Cat can't meet its order demands , but that does not mean they will not play hardball. The CAW also needs to be aware of the "buy American frenzy" that plays well at home even if it doesn't make economic sense. Large unions have economic depts ,same as the companies, so everyone is ready to bluff thinking the other guy has no clue  . No reasonable  union wants its employer to be at an economic disadvantage against  its competion .If London closes it will because of US politics, Indiana is a swing state and targeted by both parties.

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Posted by Ulrich on Thursday, December 29, 2011 7:56 PM

$16.50 an hour is a lousy wage up here. I doubt they will accept that but who knows. My guess is that CAT has already made up its mind to move the plant and this last offer (if the article is in fact correct) is simply posturing.

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Posted by D.Carleton on Thursday, December 29, 2011 6:54 PM

Those guys from CAT do not screw around: http://www.lfpress.com/news/london/2011/12/28/19174916.html

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Posted by Ulrich on Wednesday, December 28, 2011 4:52 PM

In this case I'd say CAT does. Striking is a legitimate bargaining tool although of limited value when the employer can simply respond by shutting the  plant down or moving it . CAT is a large multinational that has the wherewithal and the bucks to  relocate plants as it sees fit. The employees in London don't have that many options in terms of good paying manufacturing jobs, and I'm sure CAT knows that and bargains accordingly.

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Posted by zugmann on Wednesday, December 28, 2011 3:44 PM

gsrrman

There have been too many companies that have gone bust because of the greedy unions.  They were good in their day, but now with all of the labor laws they ar superfluous.  They should be made to act like they do with the federal government.  You CANNOT STRIKE.  You CAN and should look after your members interests, BUT when a company says this is our offer your take it or the old labor contract stays in effect for the lenth of its term (say a 3 yer contract), then you can negoritate again.  Compnies have the absolute right to close plants if they wish, that is a management decision. 

In a race to the bottom, who wins?

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any

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Posted by caldreamer on Wednesday, December 28, 2011 2:24 PM

There have been too many companies that have gone bust because of the greedy unions.  They were good in their day, but now with all of the labor laws they ar superfluous.  They should be made to act like they do with the federal government.  You CANNOT STRIKE.  You CAN and should look after your members interests, BUT when a company says this is our offer your take it or the old labor contract stays in effect for the lenth of its term (say a 3 yer contract), then you can negoritate again.  Compnies have the absolute right to close plants if they wish, that is a management decision. 

Tags: STRIKE
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Posted by CSSHEGEWISCH on Wednesday, December 28, 2011 1:58 PM

It's really disappointing that union-busting has become an acceptable management tactic, often with the encouragement of state and local governments.

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Posted by Phoebe Vet on Wednesday, December 28, 2011 12:42 PM

That is exactly the way it is supposed to work.  The union made a complaint.  The NLRB began an investigation to see if the complaint had Merritt.  Boeing and the union came to terms and the complaint was withdrawn.  The investigation was, therefor, moot.

That is NOT the same as "the NLRB stopping Boeing from building the aircraft" there.  You do not know what the outcome of the investigation would have been.

Dave

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Posted by beaulieu on Wednesday, December 28, 2011 12:34 PM

Without a complainant they have nothing to conduct a hearing about. When the IAM was bought off the NLRB could not act.

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Posted by edbenton on Tuesday, December 27, 2011 9:15 AM

Actually at First teh NLRB was Stopping Boeing from Opening the Opening of the Second 787 Plant.  However it was when the IAM agreed to the NEW contrtact that contained Language that states the NEW 737 Line will be in a IAM Represented Plant they Agreed to DROP THE CASE.  So how is the NLRB NOT BEING BIASED IN THE CASE when they only dropped the case AFTER BOEING was FORCED to neogotiate from a postion of Weakness to agree to let the IAM dictate where the Best Selling Plane of ALL TIMES be Assembled. 

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Posted by Phoebe Vet on Tuesday, December 27, 2011 8:22 AM

ccltrains

Remember the NLRB stopping Boeing at their South Carolina plant from building the 787 jet.

No they didn't:

http://www.thesunnews.com/2011/12/23/2565642/air-india-to-get-first-sc-787.html 

Didn't Fox News report that?

 

Dave

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Posted by ccltrains on Monday, December 26, 2011 7:59 PM

Remember the NLRB stopping Boeing at their South Carolina plant from building the 787 jet.

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Posted by cat992c on Monday, December 26, 2011 7:02 PM

The people of Indiana especially Govenor Mitch Daniels would welcome the new business in Muncie.All of Caterpillar big engines are made across the state in Lafayette.Cat means business when it come to trains.THey just invested close to 9 billion to get Bucyrus's mining equipment business to give their customers product they have been asking for.

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Posted by PNWRMNM on Friday, December 23, 2011 9:27 AM

Paul,

What you say is true, but Canada is a Foreign Country especially as to labor laws.

Mac

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Posted by Paul_D_North_Jr on Friday, December 23, 2011 6:12 AM

In labor relations, plant closure is viewed as the equivalent of 'industrial suicide'.  The rationale is that's such a drastic move and essentially ends the company's operations there, so that it must be for serious, irreversible, and unchangeable business/ financial reasons, and not merely a bargaining tactic.  Said another way, the actions speak louder than the words.  The NLRB and courts usually take a 'hands-off' position on that action as a management prerogative, and do not view that as an unfair labor practice - unless the union has negotiated a non-closure provision, that is. 

- Paul North. 

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Posted by caldreamer on Thursday, December 22, 2011 9:48 PM

Correct on ll ccounts.  BUT if Catapillar through its Progress Rail subsidiary closes the EMD shop in London, Onterio and moves the work to Muncie, there is nothing that the union can do about it.  As I stated earlier, that is what they did in York, Pa.

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Posted by Paul_D_North_Jr on Thursday, December 22, 2011 8:36 PM

Most contemporary union contracts prohibit subcontracting or outsourcing "union work" ("bargaining unit work") to a non-union shop, provided that the union has the bargaining clout and sophistication to get that negotiated into the final signed contract.  That should be equally effective for a subcontract upwards to the union shop's owner as much as for an outside 3rd party shop, unless that was a specifically negotiated exception.

On the other hand, if an independent 3rd party vendor supplies a partially-assembled component - even of fairly large size and scope - that may be viewed as just a large-item purchase, and not a subcontract.  That may be equally true when the vendor is the parent company as well . . . Whistling

The result may turn on exactly what work is being done by whom, and the extent to which it is being done by a union workforce, as well as the present economic conditions and alternatives.  If the parent company is now performing the same task that a non-union vendor has traditionally and previously done, and hence there's little or no capacity to bring it in-house, there's no point to 'grieving' (union complaining and perhaps striking) about it. 

- Paul North.    

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Posted by Modelcar on Thursday, December 22, 2011 4:23 PM

All of the latest post seems correct to me as far as ownership is concerned....And...for many folks here in Muncie, we're pretty happy the facility is here, and business seems to be headed upward.

We've lost major auto parts mfg. plants in the past several decades, and this business is certainly welcome.

Quentin

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Posted by YoHo1975 on Thursday, December 22, 2011 4:06 PM

EMD is a wholly owned subsidiary of Progress rail. They are a separate company which must abide by all of the agreements it made prior to purchase. Similarly, Caterpillar owns Progress rail which is a wholly owned subsidiary of Cat. Progress Rail does not need to abide by any of the commitments Caterpillar has made to it's unions. 

Progress rail owns EMD which owns the London plant. Progress also owns the Muncie plant, but EMD does not. Therefore the EMD work at the Muncie plant is contract work performed by Progress on behalf of it's subsidiary. It's a sneaky way to get around a forced unionization. 

 

It's also Standard Business Accounting. 

 

 

Other Progress facilities have performed contract work for EMD as well.

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Posted by greyhounds on Thursday, December 22, 2011 1:10 PM

YoHo1975

The Muncie plant is not Union. And lets be clear here, the Muncie plant is a Progress rail plant doing contract work for EMD. The London Plant is an EMD plant. EMD is a Union Shop, Progress Rail is not. That's how the Muncie facility gets away without being Union. 

 

Given EMD's current orders which are filling the lines at both plants, I can't imagine that there is a corporate interest in getting rid of London. At least not right now.

 

Also, CP just put in a huge huge huge order for ECO locos with EMD, so they are getting contracts with both Canadian roads. 

Run this by me one more time....

Progress Rail bought EMD but EMD is now contracting out work to its owner?  Wasn't the London, ON facility included in the purchase of EMD by Progress Rail?  (Progress Rail being owned by Caterpillar.)

 

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Posted by YoHo1975 on Thursday, December 22, 2011 12:46 PM

The Muncie plant is not Union. And lets be clear here, the Muncie plant is a Progress rail plant doing contract work for EMD. The London Plant is an EMD plant. EMD is a Union Shop, Progress Rail is not. That's how the Muncie facility gets away without being Union. 

 

Given EMD's current orders which are filling the lines at both plants, I can't imagine that there is a corporate interest in getting rid of London. At least not right now.

 

Also, CP just put in a huge huge huge order for ECO locos with EMD, so they are getting contracts with both Canadian roads. 

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Posted by jeffhergert on Thursday, December 22, 2011 11:29 AM

rrnut282

That question (union) may become moot.  Indiana's legislature will, again in 2012, consider a "right-to-work" law whereby, you don't have to join the union to get the job.  Last year a majority of Democrats fled the state to avoid the issue by denying a quorum needed to conduct the business of the state because they knew they didn't have enough votes to stop it.  I can only assume CAT would be in favor of this law.

"Right to Work" doesn't mean you can't have a union.  It just means union membership isn't required for employment.  Iowa is one of those states, but many factories and meat processors (etc) have unions that represent the work force, even though not all employees eligible belong. 

Jeff

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Posted by rrnut282 on Thursday, December 22, 2011 11:10 AM

That question (union) may become moot.  Indiana's legislature will, again in 2012, consider a "right-to-work" law whereby, you don't have to join the union to get the job.  Last year a majority of Democrats fled the state to avoid the issue by denying a quorum needed to conduct the business of the state because they knew they didn't have enough votes to stop it.  I can only assume CAT would be in favor of this law.

Mike (2-8-2)
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Posted by Modelcar on Thursday, December 22, 2011 9:42 AM

Muncie plant unionized....?  That I don't know the answer to.  Just from the articles we've seen {locally}, I gather the wages are to be quite decent.

From all the data so far, I can't say if the workers are unionized.  If I had to take a guess....I'd say it isn't currently...{only my guess}.

Quentin

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Posted by caldreamer on Thursday, December 22, 2011 9:04 AM

Yes, Cat does play hardball with the unions.  At their plant in York, Pa, near me he workers went on strike.  Finally CAT gave them an offer which they accepted.  As soon as the strike was over they closed the plant nd moved  the production to Muncie, Idiana.  All of the workers lost their jobs. They do NOT fool around with unions and the Canadian unons should take note of lthis if they want to keep working at the London, On plant.

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Posted by CSSHEGEWISCH on Thursday, December 22, 2011 6:50 AM

A few observations:  The story in the London Free Press mentioned that the local head of the Canadian Auto Workers fears that Cat wants to move production to the United States, where labor costs are lower (!).  Also, Cat management has a very long record of playing hardball when it comes to labor negotiations and has taken several long strikes in the past to make its point.  The Canadians may not be ready for this kind of negotiating style.

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Posted by Dakguy201 on Thursday, December 22, 2011 5:25 AM

What is the union status of the Muncie plant?  If it is unionized, is it the same one as the London plant?

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