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BFGoodrich Tire Manufacturing to Close Ontario Facility - 1,100 Workers Losing Jobs |
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Written by Staff
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Thursday, 02 February 2006 |
BFGoodrich Tire Manufacturing, a business of Michelin North America (Canada) Inc., announced today that it will close its facility located in Kitchener, Ontario later this year. The company will shift production to other BFGoodrich Tire Manufacturing facilities in the United States. The decision will effect approximately 1,100 wage and salaried employees.
Hourly wage employees of the three BF Goodrich tire factories in the United States and the Kitchener plant in Ontario had ratified a new labour agreement in August of 2004. The ratified contract provided job security specifically for the three plants located within the United States but did not specify the same provisions for the Canadian plant but the Kitchener workers did vote in favour of a "similar agreement" at that time.
The 2004 deal prohibited plant closures and layoffs until the expirary date of the contract - July, 2006. Coincidentally, the Kitchener closure is slated for July 22, 2006.
Michelin North America (Canada) Inc. president Guy Pekle explained that the plant closure is coming as the result of passenger tire overcapacity in North America as well as an increase in lower-cost competitors.
BFGoodrich customers however will continued to be supplied by the three remaining U.S.-based plants in Tuscaloosa and Opelika, Ala. and Fort Wayne, Ind.
The company has said it will work with the appropriate government agencies, the
community and the United Steelworkers to help to make the transition for all
affected employees as smooth as possible, including providing separation pay
and other benefits. |
