PR's CEO's letter to employees
Earlier today, we had the very unfortunate
task of announcing the decision to cease production at Electro-Motive Canada’s
London, Ontario facility. Our efforts – spanning about 9 months – to
negotiate a competitive labor agreement with the Canadian Auto Workers
union were not successful.
As you know, we compete in a global marketplace
where orders for locomotives are won or lost based on extremely competitive
pricing and the ability to meet short turnaround times. All facilities
within EMC, Electro-Motive Diesel and Progress Rail Services must achieve
and maintain competitive costs, quality and operating flexibility to win
in the global marketplace. The London plant, primarily because of an antiquated
labor contract, faced serious competitive disadvantages.
Even though EMC’s final offer addressed
these competitive disadvantages, the union would not accept our offer.
The gulf between the company and the union was simply too wide to
resolve. Market conditions made today’s regrettable decision unavoidable.
We will now start the process of conducting
an orderly closure of the London production operations, including the transfer
of locomotive assembly operations to our competitive facilities in North
and South America. We are confident these facilities will distinguish themselves
to our customers in quality and service.
We appreciate your hard work on behalf
of our customers, and your commitment to see our company become the leader
in the global rail industry. Over the past year, we have made large capital
investments to position our company to achieve this goal. We know we can
count on your help as we realign our operations and show our customers
that we are the company they can trust for all of their rail equipment
President and CEO"