Caterpillar recently announced the closing of its London, Ontario, locomotive plant after it locked out 460 workers. The employees, represented by the Canadian Auto Workers union, were locked out of work after refusing to accept a scandalous 50 percent pay reduction.
Despite receiving $5 million in tax breaks—announced by Prime Minister Harper himself— and despite Caterpillar’s annual profit increase of 83 percent, management claimed labor costs were too high. The plant will be relocated to Muncie, Indiana. Caterpillar decided to move almost immediately following the passage of the new anti-union “right-to-work” law in Indiana.
Union workers are said to be currently guarding the closed plant in order to prevent the company from moving equipment. CAW has threatened to occupy the plant if Caterpillar does not give the workers a good severance package.
Situations like this are common, and the plight of these Canadian workers highlights the need for international solidarity to prevent unfair practices by multinational corporations.
