Update: Electro-Motive Plant in London, Ontario, Closes; Jobs Moving to Indiana?

My January 23rd post, "Get Your Ass Down Here, Prime Minister Harper!" linked a story detailing the labor fight between Caterpillar, Inc. and its at a London, Ontario factory over a proposed 50% reduction in pay and benefits. Well, it now appears that dispute has reached endgame, as reported by the Montreal Gazette:

The closure Friday of Electro-Motive plant in London, Ont., paints a bleak picture for the future of the Canadian manufacturing industry, one expert says, adding the "writing was on the wall" for the southwestern Ontario plant long before the closure became official.

Progress Rail, a U.S.-based subsidiary of giant Caterpillar Inc., closed the Electro-Motive plant's doors Friday after prolonged unsuccessful contract negotiations and a month after more than 450 workers were locked out. The closure added to a worrisome trend, says Western University economist Mike Moffatt.

At least Canada has one economist who is willing to be honest about the bleak long term trend here:

The closure Friday of Electro-Motive plant in London, Ont., paints a bleak picture for the future of the Canadian manufacturing industry, one expert says, adding the "writing was on the wall" for the southwestern Ontario plant long before the closure became official.

Progress Rail, a U.S.-based subsidiary of giant Caterpillar Inc., closed the Electro-Motive plant's doors Friday after prolonged unsuccessful contract negotiations and a month after more than 450 workers were locked out. The closure added to a worrisome trend, says Western University economist Mike Moffatt.

But there is an unexpected shocker at the end of this story:

Workers at Electro-Motive had been off the job since New Year's Day after rejecting a new collective agreement that would have lowered the salaries of some workers currently paid $35 an hour to $18 an hour. Despite the closure announcement, picket lines remained active at the site on Friday.

The company apparently intends to relocate its operation to a facility in Muncie, Indiana, where Moffat says it will have an easier time moving ahead with less resistance from workers.

He said new workers there were being trained, with a plant being expanded despite running at only one-third of its capacity.

On Wednesday, Indiana became just the second U.S. state in 20 years to enact right-to-work laws, which allow a unionized workplace to have voluntary enrolment. He said that practice often leads to a lot of "freeloading," which results in underfunded unions with less clout in the negotiating room.

So there you have it. Conditions for workers are getting so bad in the United States that we are now starting to become a potential off shoring destination for jobs from other first world countries. The politicos like President Hopey-Changey will crow when these new, low paying Indiana jobs become reflected in the U.S. employment figures, but they will not be jobs that allow the workers to buy a house, pay for their children's college education or plan for a secure retirement. This is the endgame of NAFTA, GATT and all of the other "free" trade agreements...lowering global wages until they reach a worldwide equilibrium just above subsistence level and enriching the predatory capitalists who ruthlessly shift the jobs around. It's another telling indicator of the new dystopia.


Bonus: Now the Canadians have a good reason to sing this bitter song, "I don't need your war machines...I don't need your ghetto scenes"