US automaker Ford Motor Co. will shutter one of its manufacturing plants in Canada in 2011, a move that will cut 1,400 jobs, the Canadian Auto Workers said Friday.
As part of a cost-reduction agreement between the company's US headquarters and the CAW, the plant in St. Thomas, Ontario, will close in the third quarter of 2011, the powerful union said in a statement.
Some 1,400 employees will be dismissed, CAW spokeswoman Shannon Devine told AFP. Canadian media put the number of jobs eliminated at 1,600.
As part of the tentative agreement the union said it obtained a commitment by the US automaker to keep at least 10 percent of its North American production in Canada.
"During the negotiations, Ford threatened that if we didn't come to an agreement, the company would begin shifting investment out of Canada," said Ken Lewenza, president of the CAW.
"In today's globalized economy where companies attempt to bypass community commitments, it's crucial that we don't allow this to happen."
The agreement, which expires in September 2012, is expected to be voted on and approved Sunday by the CAW's 7,000 Ford workers in Canada.
The St. Thomas plant produces the Ford Crown Victoria -- a model routinely chosen by US police forces and New York taxis -- as well as the Mercury Grand Marquis.
Although Ford did not accept bailout money from the US government like Chrysler and General Motors did, the CAW said Ford followed the pattern set out earlier in the year by its US rivals to cut significant portions of their Canada operations as part of restructuring.
Chrysler and GM both filed for bankruptcy and received billions of dollars in US government aid. Canada's government also pumped billions of dollars into the companies as part of packages to keep their auto manufacturing operations here afloat.
As part of the new deal, the CAW agreed to a reduction in holidays and a requirement for workers to contribute to the company's pension fund at the rate of one dollar for every hour worked, Devine said.
Ford for its part made new production and investment commitments in several manufacturing locations in Canada, including production of "at least two new-generation vehicles in the next product cycle" at its Oakville plant outside Toronto.
"This footprint commitment was an important achievement for the union," Lewenza said.
But Ford stood firm on closure of the St. Thomas plant.
"Nothing was harder... than coming to the realization that regardless of whatever suggestions the union came up with to save the St. Thomas facility, Ford would be closing the plant," said Mike Vince, chairman of the CAW-Ford bargaining committee and president of CAW Local 200.
Ford committed to funding and opening a center to assist workers unemployed after the plant closure.
Agencies
Showing posts with label Toronto. Show all posts
Showing posts with label Toronto. Show all posts
Saturday, October 31, 2009
Friday, April 3, 2009
Like Boeing, Bombardier to layoff 3,000 jobs
Canadian plane maker Bombardier, which is the third largest aircraft company in the world, on Thursday joined giant Boeing in axing 3,000 jobs worldwide citing sagging demand for its business jets.
Boeing has already announced to lay off 10,000 staff as the global downturn takes toll on the aviation sector.
Surprisingly, job cuts at the Montreal-based Bombardier came the day the company reported higher profits and revenue for the fiscal year 2009. But "there is no doubt that we are going through challenging times and our business environment is changing fast," said Bombardier CEO Pierre Beaudoin in a statement.
"However, we believe we are well positioned to face this difficult economic environment with a strong balance sheet, high level of liquidity as well as a large and diversified backlog, both by product and geographies," he added.
Thursday's job cuts, which account for 10 per cent of the company's total workforce, are in addition to 1,360 jobs it eliminated in February after fall in demand for its Learjet and Challenger aircraft, the Bombardier statement said.
Apart from eliminating hundreds of positions in Canada, the latest job cuts will also affect the company's facilities in the US, Mexico and Northern Ireland, the statement said.
With companies avoiding buying of corporate jets amid the global downturn, Bombardier said it expected to sell 25 per cent less business aircraft in the current fiscal year.
In its annual fiscal report Thursday, Bombardier posted a net income of $1 billion for the fiscal year 2009 ending January 31 - up from $317 million during the previous year.
The company earned a total revenue of $19.7 billion in 2009, compared to $17.5 billion in fiscal year 2008.
However, despite its strong financial showing, the company said its sales were slipping, forcing it to scale back its operations and axe jobs.
Agencies
Boeing has already announced to lay off 10,000 staff as the global downturn takes toll on the aviation sector.
Surprisingly, job cuts at the Montreal-based Bombardier came the day the company reported higher profits and revenue for the fiscal year 2009. But "there is no doubt that we are going through challenging times and our business environment is changing fast," said Bombardier CEO Pierre Beaudoin in a statement.
"However, we believe we are well positioned to face this difficult economic environment with a strong balance sheet, high level of liquidity as well as a large and diversified backlog, both by product and geographies," he added.
Thursday's job cuts, which account for 10 per cent of the company's total workforce, are in addition to 1,360 jobs it eliminated in February after fall in demand for its Learjet and Challenger aircraft, the Bombardier statement said.
Apart from eliminating hundreds of positions in Canada, the latest job cuts will also affect the company's facilities in the US, Mexico and Northern Ireland, the statement said.
With companies avoiding buying of corporate jets amid the global downturn, Bombardier said it expected to sell 25 per cent less business aircraft in the current fiscal year.
In its annual fiscal report Thursday, Bombardier posted a net income of $1 billion for the fiscal year 2009 ending January 31 - up from $317 million during the previous year.
The company earned a total revenue of $19.7 billion in 2009, compared to $17.5 billion in fiscal year 2008.
However, despite its strong financial showing, the company said its sales were slipping, forcing it to scale back its operations and axe jobs.
Agencies
Wednesday, December 3, 2008
Severe shortage; Canada woos skilled Indian workers!
Here's good news for engineers, technicians and other skilled workers wanting to work abroad. Canada is trying to attract young talent from countries like India by relaxing norms for visas in this category, says a Canadian immigration expert.
'There is an acute shortage of skilled workers in Canada and the situation will worsen in the next 5-10 years unless the government makes an effort to attract talent from a young country like India,' said Curtis Panke, director of global operations for the Ontario-based Global Placement Services.
Pointing out that the retirement age for most occupations in Canada is 55 years, he said in the next five years, more than 20 percent of the country's engineers, doctors, professors and geologists would retire.
'This huge void cannot be filled with domestic talent alone. If we do not attract the talent from outside, there will be a talent vacuum of up to 70 percent in the next 10 to 15 years,' Panke told the media.
Keeping all this in mind, he said, the Canadian government has made vital changes in its immigration policy and relaxed certain norms for a Canadian visa in the skilled worker category.
The latest fast track processing of visa applications in the federal skilled worker category ensures a Canadian visa in a shorter period of just 6-12 months, pointed out Panke.
The Canadian government has issued a list of 38 high-demand occupational categories, including health, finance, engineers, heavy-duty mechanics, industrial technicians, food service managers and other skilled trades.
Panke is in Punjab to gauge the talent pool available and to conduct seminars all over the state in collaboration with the city-based World Wide Immigration Consultancy Services (WWICS), which has sent over 60,000 families and around 250,000 individuals to Canada till date.
'There are thousands of Punjabis in Canada, who are doing extremely well in their professions and contributing to the country's economy. Comparatively, we have more applicants from this region if we compare it with other states in India,' stated Panke.
Asked about the impact of global recession on the Canadian economy, Panke said a majority of the organisations and companies there would be unaffected in the long run. 'There is some impact but all this is a temporary phase and will pass very soon. Moreover, there is no impact on the openings available under skilled category there and Canada is looking forward to employ skilled workers in a big way.'
Talking about Canada's federal investor category for permanent residency in the country, Lt Col (retd) B.S. Sandhu, chief managing director of WWICS, said: 'An investor is only needed to invest Rs.5 million in some flourishing trade in Canada and can relocate there under the Canadian Investor Program.'
The applicant, under this category, only needs to have a work experience of two years and no language proficiency test like IELTS is required, he added.
Source: Agencies
'There is an acute shortage of skilled workers in Canada and the situation will worsen in the next 5-10 years unless the government makes an effort to attract talent from a young country like India,' said Curtis Panke, director of global operations for the Ontario-based Global Placement Services.
Pointing out that the retirement age for most occupations in Canada is 55 years, he said in the next five years, more than 20 percent of the country's engineers, doctors, professors and geologists would retire.
'This huge void cannot be filled with domestic talent alone. If we do not attract the talent from outside, there will be a talent vacuum of up to 70 percent in the next 10 to 15 years,' Panke told the media.
Keeping all this in mind, he said, the Canadian government has made vital changes in its immigration policy and relaxed certain norms for a Canadian visa in the skilled worker category.
The latest fast track processing of visa applications in the federal skilled worker category ensures a Canadian visa in a shorter period of just 6-12 months, pointed out Panke.
The Canadian government has issued a list of 38 high-demand occupational categories, including health, finance, engineers, heavy-duty mechanics, industrial technicians, food service managers and other skilled trades.
Panke is in Punjab to gauge the talent pool available and to conduct seminars all over the state in collaboration with the city-based World Wide Immigration Consultancy Services (WWICS), which has sent over 60,000 families and around 250,000 individuals to Canada till date.
'There are thousands of Punjabis in Canada, who are doing extremely well in their professions and contributing to the country's economy. Comparatively, we have more applicants from this region if we compare it with other states in India,' stated Panke.
Asked about the impact of global recession on the Canadian economy, Panke said a majority of the organisations and companies there would be unaffected in the long run. 'There is some impact but all this is a temporary phase and will pass very soon. Moreover, there is no impact on the openings available under skilled category there and Canada is looking forward to employ skilled workers in a big way.'
Talking about Canada's federal investor category for permanent residency in the country, Lt Col (retd) B.S. Sandhu, chief managing director of WWICS, said: 'An investor is only needed to invest Rs.5 million in some flourishing trade in Canada and can relocate there under the Canadian Investor Program.'
The applicant, under this category, only needs to have a work experience of two years and no language proficiency test like IELTS is required, he added.
Source: Agencies
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