TORONTO, Jan. 5, 2012 /CNW/ - The CAW is questioning federal government
claims that London, Ontario locomotive maker Electro-Motive's assets
were below the Investment Canada Act threshold for government review.
CAW President Ken Lewenza was responding to media reports today that a
federal Industry Minister spokesman said the value of the company's
assets were below the $299 million threshold when it was sold.
"There is no oversight and no transparency in this whole process,"
Lewenza said. "Caterpillar declared a gain of $1.3 billion in assets on
its books following the takeover of EMC. The federal government now
says that the takeover did not meet the threshold of $299 million for a
full review, or to seek legally-binding commitments to Canada."
"In a $1.3 billion deal, how can the Harper government seriously believe
that not even a quarter of those assets are in Canada?" Lewenza asked.
"London is the largest manufacturing plant in the company, and at the
time of the takeover had nearly half the company's employees. The
Harper government gave this sale a rubber stamp paving the way for this
disaster," Lewenza said. "This is a disservice to Canadians."
Lewenza is now asking the Harper government to disclose the value of
assets in London declared by Caterpillar and is asking what steps did
the federal government take to ensure the validity of the information
provided by Caterpillar?
"Will the federal government use its powers under the Investment Canada
Act to review this obviously faulty decision to head off this
job-destroying disaster?" Lewenza asked.
He also blasted a statement by the federal government spokesperson in
the media today that the federal government won't get involved in the
lock-out of Electro-Motive workers because it is a dispute between a
private company and the union.
"The federal government certainly had no problem interfering in
bargaining between Air Canada and the CAW last year," Lewenza said.
SOURCE Canadian Auto Workers Union (CAW)
For further information:
contact CAW Communications, John McClyment, cell 416-315-3202 or Angelo DiCaro, cell, 416-606-6311