THUNDER BAY — Layoffs are scheduled to start at the local Alstom plant in just over a week’s time, says the union representing workers on the shop floor.
This comes as an existing contract to build LRV (light rail vehicle) streetcars for the Toronto Transit Commission is coming to a close.
“The layoffs have officially been announced,” said Justin Roberts, the president of Unifor Local 1075, adding the first ones are slated for May 9.
“The final layoffs will take place around the end of August … just over 200 people for the entire facility,” he continued, adding that just under 200 of those to be laid off are Unifor members and that the layoffs will be staggered over that period “as the individual stations start to shut down within the building.”
“That's where you'll see smaller groups going out the door each week or every couple of weeks,” he said.
A company spokesperson confirmed the layoff timeline and said up to 230 employees are included as "Alstom's Thunder Bay facility is restructuring to adjust employment levels to reflect the current workload."
The local factory, which has changed ownership several times over the decades, has historically been one of, if not the, largest private sector employers in the city.
Roberts said he expects after this round of layoffs is complete, Unifor will be down to about 170 or 180 employed workers. The plant, he said, does have other unionized and non-unionized workers, but he couldn’t speak to any more specifics on those numbers or how they might change.
It’s a tough time for workers, he said.
“There's a real doom and gloom when stuff like this happens, a lot of uncertainty,” he said. “A lot of our members are worried when and if they'll come back at all.”
“It's definitely stressful times every time we have layoffs around here.”
That, Roberts added, is especially felt among the younger employees who may not be as used to the sometimes-cyclical nature of the work.
“We have had major contracts over the last few years, so a lot of our new members aren't used to the layoffs,” he said. “They are the ones that become the most worried, especially about their futures and the uncertainty.”
The downsizing of the workforce comes as Alstom and its employees await word on whether the company will be awarded an over-two-billion-dollar contract to produce 55 new trains for its Line 2, which runs between Etobicoke and Scarborough.
"We are working diligently to pursue other contracts for this plant, including the TTC’s upcoming Line 2 subway line contract," reads a statement from Alstom.
Recently, Ontario Transportation Minister Prabmeet Sarkaria sent a letter to Toronto mayor Olivia Chow, encouraging the city to “consider a sole-source procurement with Alstom” and committing to work with the federal government “should this decision lead to any changes in the project scope.”
Roberts said that kind of backing, especially right now, is encouraging.
“It's great news, and since the beginning of all this, Minister Sarkaria and Doug Ford’s team have been very supportive of the work coming to Thunder Bay,” he said. “Olivia Chow's team, as well, has vocalized that they're supportive of us getting the work as well.”
“I hope this letter really does speed the process up because with these layoffs coming right now, it'd be nice to have some good news coming to the facility.”
Roberts also noted the support from Thunder Bay-Superior North New Democrat MPP Lise Vaugeois. He said she also penned a letter, after her re-election to Queen’s Park.
In a media release on Wednesday, Vaugeois said she was pleased to see advocacy from the province and pledged to "stand alongside the government in support of awarding the contract to Alstom in Thunder Bay," but added that the Ford government reducing Canadian content requirements allowed another previous multi-billion-dollar project to build subway cars for the Ontario Line to be built in the United States.
“We know that when contracts stay in Ontario, money is recirculated throughout the province in the form of wages and then in taxes from the plant and from the workers,” Vaugeois was quoted as saying.
“When contracts go offshore or south of the border, the money spent is taken out of circulation and benefits people other than those who are actually paying the bill.”
“It's nice to see bipartisan support for this facility, which is very crucial to our futures,” Roberts said.
"We are working diligently to pursue other contracts for this plant, including the TTC’s upcoming Line 2 subway line contract," reads a statement from Alstom.
"Bringing additional work to Thunder Bay is an ongoing effort for us and our partners, as demonstrated by the Metrolinx overhaul contract announced by the Ontario government in January."
When the $500 million Metrolix contract was announced, officials said is would ensure work for some employees until 2031.
