BREAKING NEWS: Post pre-buy production cuts begin in Canada

ST. THOMAS, Ont. — About a quarter of the workforce at Sterling Truck’s St. Thomas, Ont. assembly plant will likely be laid off between now and next spring.

According to the London Free Press, over 600 employees face layoffs-110 workers next week on Sept. 15, and another 500 next year, when the trucking industry is expected to be at the lowest point of an expected downturn.

The Sterling plant produces the medium-duty Acterra and the class-8 HX.

Truck sales in 2006 have reached record levels in North America mainly because of a massive “pre-buy” surge from carriers placing large orders of current equipment in advance of new, more expensive diesel engines hitting the market on Jan. 1, 2007.

The rules, mandated by the Environmental Protection agency, require OEMs to sell only certified, low-emission diesel engines in the New Year. The basic technology behind the engines has been around since 2002, but the equipment is expected to add as much as $12,000 to the price of a new truck and requires ultra low sulfur diesel (ULSD) to meet emission standards, among other concerns.

Not unexpectedly, there’ll be less Acterra’s built at Sterling’s St.
Thomas plant next year. About 600 workers will be laid off.

Richard Laverty, chairperson of Canadian Auto Workers Local 1001, told the Free Press that the jobs cuts are a “serious blow” but not necessarily unexpected as the new emissions regs make buying a new truck cost prohibitive.

The news comes just weeks after Navistar International gave notice to employees it may have to slash hundreds of jobs at its Canadian heavy-duty assembly plant in Chatham, Ont.

The company’s alert was issued to comply with requirements of the Ontario Employment Standards Act (ESA), which states 16 weeks advance notice must be given before any job cuts can be implemented.

The company didn’t disclose the number of layoffs discussed, but Chatham plant chair Mike Neuts told TodaysTrucking.com that over 800 jobs are part of the ESA notice. “The number that came out was considerably higher than what I was expecting,” he said at the time.

Meanwhile, some truckers who haul in the auto parts-dependant corridor between Windsor, Ont. and Montreal are coping with a series of additional production cuts announced by the Big Three automakers and their suppliers.

Ford recently announced temporary plant shutdowns at 10 assembly plants in the U.S. and Canada, resulting in 350 layoffs in Windsor, Ont. and another 1,000 jobs at its St. Thomas facility.

As a result, dozens of parts and components suppliers said they would scale back operations. In London yesterday, wheel manufacturer Accuride said about 40 workers will be laid off.

In March of this year, the Sterling plant’s 2,000 workers went on strike for two weeks. The conflict got off to a rough start as tires on cars belonging to management as well as police cars were slashed.

The CAW and the company eventually agreed to ratify a new three-year contract, which included improvements to pensions, and key job security language.

— with files from London Free Press


Have your say


This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.

*