Workers at Caterpillar Inc.'s London, Ont. locomotive plant have voted 95 per cent in favour of a deal on severance pay and pensions, three weeks after the company shut the factory down.
The deal was finalized between Electro-Motive Canada and Canadian Auto Workers, representing almost 500 unionized workers, on Tuesday. In a vote Thursday, 400 members voted in favour of the deal, 22 said no and one ballot was spoiled, the CAW said.
The deal comes after two weeks of negotiations in which the union said it was aiming to get more than a minimal severance agreement. Labour laws stipulate workers with less than five years of experience aren't required to receive severance, while those with more than five years experience get one week's pay for each year served to a maximum of 26 weeks.
The current agreement calls for three weeks pay for each year served -- including those with less than five years experience.
Peoria, Illinois-based Caterpillar (CAT-N115.76-0.05-0.04%) bought the 62-year-old locomotive plant 18 months ago. It had proposed wage cuts of as much as 50 per cent from its workers. The company locked them out on Jan. 1, after they rejected the proposal. On Feb. 3, it shut it down for good.
“Nobody should be mislead in any way: nobody is walking out of here celebrating,” said CAW national president Ken Lewenza at a press conference at the Marconi Club in London's east end. “People are now walking out of here with a soft transition to job loss.”
He asked the federal government to review the Investment Canada Act to assess how Caterpillar's purchase of the plant became a net benefit to Canadians.
Details on pensions are still being ironed out, partly because the plant was formerly owned by General Motors and 190 workers had pensions with GM. The union is meeting with GM later today to discuss the matter.
Some details of the agreement:
each employee will get severance pay of three weeks for each year of service.
each bargaining unit worker will get a lump-sum ratification bonus of $1,500, less certain applicable statutory deductions.
drug plan and some other benefits will continue to Aug. 31.
a lump sum payment of $350,000 to the CAW is intended for settling grievances, job-retraining and job-search assistance for affected workers.
The Caterpillar plant closing has garnered media attention from as far as the U.K., U.S., Australia and Sweden.
The company was not available for an interview on Thursday. In an email from its outside PR firm, the company said it is now focusing on a safe and orderly wind-down of the facility.
“While it is regrettable not being able to reach an agreement with the union that would have sustained the London plant, EMC is pleased that the parties were able to successfully negotiate a generous severance agreement for represented employees,” it said. “We wish them all the best for the future.”
Original Article
Source: Globe
Author: Tavia Grant
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