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CAW on Electro Motive Closure

CAW President Ken Lewenza calls the closure of London's Electro Motive Plant "callous", but says it didn't come as a total surprise. Lewenza says Caterpillar had no intention of keeping the plant open and was trying to provoke a crisis "from day one'" by trying to force the workers to take major pay cuts. The company had asked employees to take a 50 per cent pay cut to help keep the plant open. 450 workers were then locked out to start the New Year when CAW members rejected the proposal. Caterpillar subsidiary Progress Rail Services says the cost structure at the plant was unsustainable. This, as the company recorded a record $1.54-Billion profit in the 4th quarter of 2011.

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