Caterpillar shutdown makes International news

The  Caterpiilar shutdown of its Electro-Motive Diesel plant in London is making international news.

There is a lengthy story today in the Guardian – the respected UK daily newspaper. Yes, they’re talking about London, Ont. In London , England. See the full story here: http://www.guardian.co.uk/business/2012/feb/15/caterpillar-canada-anger-emd-rail-factory

“Caterpillar feels force of Canada’s anger as it closes country’s last train plant,” the headline reads. And below:  “Shutdown of EMD locomotive factory in Ontario reopens furious debate over fragile nature of foreign investment.”

The voices of outrage from business interests quoted in the story indicates the extent to which the hardball tactics used by Caterpillar hurts the whole community, not just the worker employed there.

Gerry Macartney, CEO and general manager of the London chamber of commerce, is quoted in the story as calling the company’s behaviour as “draconian”. “This is going to reverberate right across the country,” he tells the paper. “If Caterpillar can do it, others can do it.”

The pro-business lobby is singing a different tune now than it was two years ago when Stephen Harper visited the EMD plant to brag about how well his corporate tax cuts were at attracting investment to Canada.

Ed Holder, one of three Harper MPs from the London area (and a a former president of chamber of commerce) says Caterpillar’s last contract offer to the CAW (cutting wages in half) was “brutal” and that the closure of the plant is a “tragedy”.

Of course, Caterpillar is notorious for being an anti-union employer. Picket lines are a common sight in front of its facilities.

But Caterpillar may have gone too far for even its own good this time. Boycott calls are growing, the Guardian reports. Marks Work Warehouse has pulled Cat-brand boots from its London store. And the boycott calls are extending to even bigger ticket items – like the large Cat-made equipment used in the oil sands development in Alberta.