No reprieve for Daimler's Ontario truck plant: CAW

Tue Oct 21, 2008 3:51pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By John McCrank

TORONTO (Reuters) - The Canadian Auto Workers union said on Tuesday it had failed to win a reprieve for Daimler AG's Sterling truck plant in St. Thomas, Ontario, but vowed to continue fighting to save hundreds of jobs.

Local and national union officials met with Chris Patterson, chief executive of Daimler Trucks North America, in Windsor, Ontario, to discuss the future of the plant, which employs over 2,000 people when operating at full capacity.

A week ago Daimler announced plans to close the plant in March, along with a decision scrap the Sterling heavy duty truck brand due to deteriorating market conditions. It held that line in the meeting, a CAW official said.

"Nothing was agreed upon but dialogue was begun," said Jim Stanford, an economist with the union.

The company will also close a plant in Portland, Oregon, as it focuses on its Freightliner and Western Star truck brands, and moves production to plants in Mexico and the Carolinas.

Daimler Trucks said it expects annual earnings to improve by $900 million by 2011 as a result of those actions.

While the St. Thomas operation makes Sterling trucks, the plant closing should be treated as a separate issue from the culling of the Sterling brand, said Stanford.

"For the first six years, that plant produced Freightliners, not Sterlings," he said.   Continued...