Caterpillar Inc. To Close London, Ontario Locomotive Plant-Reuters

Reuters reported that Caterpillar Inc. has decided to close its Electro-Motive locomotive plant in London, Ontario, and lay off at least 450 workers following several months of unsuccessful contract negotiations with the Canadian Auto Workers union. Peoria, Illinois-based Caterpillar said on Friday the closing is taking place because the cost structure of the operation is not sustainable. A contract with Electro-Motive Canada workers in London expired December 31, and Caterpillar had been looking for wage and benefit concessions from the CAW. Electo-Motive was acquired by Caterpillar for $820 million in 2010 and is a part of its Alabama-based Progress Rail Services unit. Workers at the London plant have been locked out of the plant since the beginning of 2012 due to the contract dispute. About 200 people are employed in salaried jobs at the London operation. Those employees are expected to help wind down operations following Friday's decision, but it is unclear how long they will continue working for the company. The union is negotiating severance deals for the hourly workers, CAW President Ken Lewenza said Friday.