Lear to close Canada seating plant after Unifor rejects contract offer

Lear to close Canada seating plant after Unifor rejects contract offer
Greg Layson
Automotive News | May 3, 2018 – 11:05 am EST
— UPDATED: 5/3/18 4:42 pm ET – adds details

Lear Corp. will close its Ajax, Ont., seating plant in response to an ongoing strike by workers there, according to a letter posted on Twitter by Unifor.
The plant’s 320 workers have been on strike since April 28 over disagreements on economic issues such as wages and benefits. Unifor, which represents the workers, and Lear reached a tentative deal this week that was later rejected by 94 percent of workers.
“Due to the resounding rejection of the Tentative Agreement by the membership on May 1, 2018, and other recent developments from our customer regarding the future work, the Company is announcing a Closure at the Lear Ajax Plant,” a letter from Lear to top union officials reads. Unifor Local 222 posted a copy of the letter on its Twitter page Thursday morning.
The letter said Lear would close the plant “as soon as practical but not later than the conclusion of the current programs” at the facility, which provides seating to the nearby Fiat Chrysler assembly plant in Brampton, Ont. FCA Brampton builds the Dodge Challenger, Dodge Charger and Chrysler 300.
Unifor Local 1285 President Jaspal Brar, who represents workers at the Brampton plant, said production is shut down there due to the strike. He said he has not heard from FCA regarding its long-term strategy in getting the plant running again in the event of a prolonged strike and the Ajax plant’s eventual closure.
“It’s a shame it’s come to this, but obviously we respect the Lear workers and hope something can be worked out to get them back to work,” Brar said.
Voicemails left for an FCA spokeswoman were not returned.
According to the Automotive News Data Center, U.S. inventory levels for the 300 stood at 35 days of supply on April 1, down from 41 days on March 1. Charger supply stood at 80 days, down from 82 in March, and Challenger inventory was at 74 days, down from 85 days. Average car inventory across all brands was at 66 days on April 1, while FCA averaged 79 days.
According to the letter, Lear said it withdrew the tentative agreement and its prior offers. The letter states that the company will provide notice to the government of Ontario when it determines the plant’s closure date and will be open to discuss “the closing provisions and the effects of this announcement” with the union.
‘Everybody’s under pressure’
Unifor President Jerry Dias said he is confident Lear will come back to the negotiating table due in part to pressure from FCA to supply seats to the plant.
“Everybody’s under pressure,” Dias said. “We need seats in order to build cars at the Brampton assembly plant.”
Lear spokesman Mel Stephens confirmed the authenticity of the letter and said the company is negotiating in “good faith.” He declined to comment further, saying the talks between the union and Lear are “private” and that the company does not intend to “negotiate in public.”
It would not be the first time Lear closed its Ajax plant. Lear closed the plant in 2009 after General Motors shut down its Oshawa Truck Assembly plant, which it supplied. The plant re-opened in 2010 following a round of collective bargaining.
Wages and benefits have been at the heart of the labor dispute. An April 10 post on Local 222’s website indicated the union foresaw “challenges” with the company in negotiating on economic issues and on the issue of job rotation at the plant.

A copy of what Unifor Local 222 says is a letter from Lear Corp. notifying the union the company will close its Ajax plant.

Photo credit: Unifor Local 222/Twitter

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