CAW Angry That Military Forces Are Buying Trucks From Navistar In U.S.

The Canadian Auto Workers is criticizing Ottawa for awarding a $254 million contract to a U.S. company to build trucks for the Canadian Forces at its plant in Texas while it is laying off workers at its plant in Ontario. Senior CAW executive Bob Chernecki said Tuesday that someone has to explain why Canadian workers can't build trucks for the Canadian military. The Defense Department has signed a contract with Navistar International Corp. to build 1,300 medium-duty trucks.

Navistar sent out 500 layoff notices to its Chatham workforce last week, with another 200 expected in the spring. Chernecki said that would leave only 200 workers and the plant's survival is at stake. Navistar spokesman Ray Wiley said the trucks couldn't be built in Chatham. "The Chatham plant builds heavy-duty trucks; these are much smaller trucks . . . that wouldn't fit on the assembly line," he said from Warrenville, IL. Chernecki said the members at the plant are furious. "At the plant, our guys were just dumbfounded; they're mad as hell," he said. "In the face of (layoffs) over the next few months, there is no legitimate credible reason" for Ottawa's decision. "Doesn't the government know there's a manufacturing crisis in Canada?" he asked.

CAW officials plan to ask Navistar executives on Wednesday to switch the order from Garland, TX, to Canada. Asked Tuesday why the contract couldn't have stipulated the trucks be built in Canada, a spokesperson for Defense Minister Peter MacKay referred the Toronto Star to the Public Works Department. "Minister MacKay's role is to outline what equipment and platforms are needed by the Canadian Forces," the defence department official said in an email. "After identifying the need, Public Works follows a competitive procurement process."

But the Public Works Department referred the question to Industry Canada and, in the end, there appeared to be no answer. CAW president Ken Lewenza sent a letter to MacKay, asking him to "provide the necessary leadership to invest in Canada by having these vehicles built in Canada." Chernecki said the 1,300 military trucks, which are to replace a fleet that dates from the 1980s, could be built with "very little or no adjustment in Chatham," or at another of the truck plants in Canada under threat of closing due to the manufacturing meltdown. They include Freightliner in St. Thomas and Paccar in Ste. Therese, Que. Workers at both plants are represented by the CAW.

In announcing the contract last, MacKay focused on stipulations in it that benefit Canada. A regional benefits clause requires Navistar to match the $254 million contract with equal investment in Canada. "We'll have mechanics working on these trucks," said MacKay. "The supplies, the parts and the gas that are used in conjunction with the trucks will obviously be Canadian." The minister also noted the tires will be supplied by Michelin's plant in Waterville, N.S.

Navistar spokesman Tim Touhy said from Illinois: "Basically it's fair to say a lot of the sourcing of parts — tires, circuit boards, fire suppression systems — are sourced in Canada." He added: "I understand these will be North American vehicles and our Navistar Canadian dealer network is part of the program to provide parts and service."