Plant Closure Case Study

Superior Essays
The Plant Closure of Electro-Motive Canada

The General Motors Diesel Division/Electro-Motive Canada Plant in London, Ontario was born in 1950 after the Second World War. This was a huge success for the City of London. The Plant manufactured and built diesel and electric Locomotives, buses, light armoured vehicles, and had a sister plant in La Grange, Illinois, U.S.A., which we’re all destined for the North American railway freight marketplace. General Motors Corp also ran its automotive plants throughout Ontario, Canada, and the United States. The freight industry was booming.
The essay will talk about a plant that had been running for over 55 years in the City of London, Ontario. The Plant opened in 1950 and then closed in February 2012.
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In the London plant the U.A.W., United Auto Workers Union membership was established for the London workers and gave it North American strength from 1950-1985. However, with contract restraints and cross boarder issues along with labour law conflicts. The union decided to start a new union, naming it C.A.W. Canadian Auto Workers Union (properly the National Automobile, Aerospace, Transportation and General Workers Union of Canada) (Worker, 2007). This was started by Mr. Bob White in 1984-85. The transformation had begun and a new collective agreement was established for all Canadian Auto Workers in …show more content…
had a contract with its members that included various, and very detailed rights and obligation both the company and the union had to follow which mirrored all the three big automotive contracts with General Motors, Chrysler, and Ford Canada. In 2005 Berkshire Partners LLC and Greenbriar Equity Group LLC purchased Electro-Motive Diesel from General Motors Corp (LLC, 2005). The C.A.W. National Union was faced with a new contract agreement that was being bargained for the union membership at the London plant, and many people were worried about their jobs. The company that purchased the London Plant was a consolidating company that was there to restructure the organization and make it ready for the sale to Caterpillar. The main issues were the new contract negotiations. Greenbriar wanted a new contract for the company and the workers. Because, the existing contract was too strong and covered almost every possible situation, and protected the workers’ jobs and their rights. The C.A.W. National Union began negotiating the contract, and came up with a revised contract and new Master Agreement, and stated to all the union membership they had everything in the prior contract. However they stated they removed some of the lengthy wording. The contract was voted on in a very strange place, and no one knew what the details were in the contract. What? Did they gain or lose in comparison to the original Master Agreement? The new Electro-Motive Master Agreement was never

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