Electro-Motive Closure: Ken Lewenza, CAW Head, Says Caterpillar Broke Investment Rules

Electro Motive Ken Lewenza Caw Caterpillar

First Posted: 02/10/2012 12:25 pm Updated: 02/10/2012 12:25 pm

TORONTO -- The head of the Canadian Auto Workers union is accusing Caterpillar Inc. of not following the rules in its 2010 takeover of a London, Ont. locomotive plant it has decided to shut down.

CAW national president Ken Lewenza has written a letter to Industry Minister Christian Paradis, calling on him to release the financial details of Caterpillar's takeover of Electro-Motive Canada..

The federal government has said that the takeover was never looked at by Investment Canada because it fell under the $300-million threshold.

But Lewenza says no public, independently verifiable data supports that claim and Caterpillar's own financial statement reported US$1.3 billion in assets associated with the takeover.

The American-based heavy equipment maker announced last week that it will close its Electro-Motive plant in London, Ont., a month after it locked out about 450 workers.

Lewenza says if the data associated with Caterpillar's purchase of Electro-Motive turns out to be inaccurate, the government can impose penalties, including annulling the acquisition.

Earlier on HuffPost:

LONDON, ONT. MAYOR TO STEPHEN HARPER: 'GET YOUR A** DOWN HERE'
FOLLOW HUFFPOST CANADA BUSINESS

TORONTO -- The head of the Canadian Auto Workers union is accusing Caterpillar Inc. of not following the rules in its 2010 takeover of a London, Ont. locomotive plant it has decided to shut down. C...
TORONTO -- The head of the Canadian Auto Workers union is accusing Caterpillar Inc. of not following the rules in its 2010 takeover of a London, Ont. locomotive plant it has decided to shut down. C...
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HUFFPOST SUPER USER
piceaglauca
The picture says it all....
01:09 PM on 02/13/2012
Who knows and who cares? that's a question to the more serious concern of companies who come to Canada, set up shop, then pull this stunt and destroy lives. The government on the surface appears indifferent to the plight of Canadians in their attempt to find security and economic stability in their lives. The government needs to tell these foreign investors what the rules are. As these companies close so do the unions which represent them. Furture companies will resist unions like walmart furthering the decay of security of person. Health and safety will be abondoned. The whole picture looks gloomy. We cannot sustain this economy on minimum wages unless we want to revert to third world status or heavy consumer debt. Thanks NAFTA and all the Jimmy's of the world.
11:19 AM on 02/11/2012
Well stated Gyice50.

Real surprise a business man breaking laws, this has become the norm. It's all about executive greed and government complacency.

I know lets deregulate some more.

The poor, working and middle class have lousy lobbyists, unlike the wealthy who have the best that money can buy.
09:24 AM on 02/11/2012
You won't need to look to hard to find out that this was a scam the problem will be the willingness of this government to do anything about it and I think we shall find that there will be no response from the Harper (bought and paid for) Government.
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HUFFPOST SUPER USER
cadawa
04:47 PM on 02/10/2012
Go CAW!
03:46 PM on 02/10/2012
That is what we have been saying all along, open the books Stephen. Time to send Catepillar packing and get back some of the money they stole with this scam. A great way to reduce competition, buy them , then shut it down, never having the intention of maintaining a presence in Canada.
Thanks again Stephen for looking out for the best interests of all Canadians, 700 more families on EI.