Navistar set to slash staff, production in Canada

This is not the first time the company has looked at shifting production of its heavy duty ProStar and LoneStar trucks out of Chatham.

In 2003 Navistar said it was going to close the plant entirely and move production to Mexico.

But the CAW agreed to significant concessions to keep the plant in Ontario and the federal and provincial governments kicked in C$65 million ($56 million) to sweeten the pot.

The CAW said on Monday it has asked the company to continue bargaining past the expiry of its collective agreement on Tuesday, but that the company has not responded.

On top of trying to find other work at the plant to keep as many employees on as possible, the union has taken issue with the company over its plans to use some third-party, non-unionized workers, reduce new hire compensation and eliminate cost of living adjustments.

The union said it has no plans to call a strike and the company has said it will not lock the workers out.

($1=$1.16 Canadian) (Reporting by John McCrank; editing by Rob Wilson)