Lake Scugog Historical Society Historic Digital Newspaper Collection

Port Perry Star, 12 Feb 1991, p. 1

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Vol. 125 No. 12 PORT PERRY, ONTARIO - TUESDAY, FEBRUARY 12, 1991 Copy 65¢ (61¢plus 4¢ G.S.T) 40 Pages By Kelly Lown Automotive parts maker Johnson Controls announced last week it will be closing the doors of its Port Perry plant, throwing 280 employees out of work. The 180 current full-time em- ployees and another 100 on lay- off were informed February 6, that the company is picking up stakes and moving to the Unit- ed States. Production will be moved to the southern states of Indiana, and Tennessee. The plant which currently supplies manual seat tracking for Chrysler, Ford, and General Motors vehicles is tentatively scheduled to cease operations by April 15 of this year. George Sabo, Johnson Con- trols general manager of Metal and Mechanisms operations said in a written statement that "the company regretted the desicion to close the Port Perry plant, but the current au- tomotive industry downturn and economic conditions have required Johnson Controls to consolidate some operations." C.AW. union officials slammed the move callingit the "latest in a long line of plant clo- sures caused directly by the Canada, United States free trade agreement." The Canadian Auto Workers Union (of which the majority of Johnson Control workers are members) said the company will move to the southern Unit- ed States where wages are con- siderably lower. Bob Nickerson, Secretary- Treasurer of CAW, in a written statement said that "contrary to the bafflegab of the corporate free-trade boosters such as the Royal Bank which claims the joblossis exaggerated, Canadi- an workers are hurting deeply MoJacks take three straight from Lakefield After losing the opening game in their best of seven Jun- ior C playoff series with Lake- field Chiefs, the Port Perry Mo- Jacks have re-bounded with three straight wins and could wrap the series up with a win on home ice this Thursday eve- ning. Can the MoJacks make it four in a row to advance to the next round of the playoffs. Find out this Thursday night (Feb. 14) at the Scugog Arena. Face- offis set for 8:30 PM. as a direct result of the 1988 trade deal, coupled with the Mulroney government's poli- cies of interest rates and high dollar." Despite union statements pointing the finger at free trade as the cause of the closure, Johnson Controls officials state the plant is being closed due to economic reasons. Bob McAughey, plant man- ager, maintains the closure is strictly economic, it has noth- ing to do with free trade. "Contrary to opinion, the move has nothing to do with free trade or with lower wages," he added. "With auto assembly plants we distribute to closing, sales are down, and volume is down. When there is a slump in the economy with no real positive end in sight, (we) just can't car- ry on losing and losing," he add- ed. The vast majority of employ- ees of the plant were shocked and angry about the company's decision. Bill Pollard, union chair of the plant told the Star, workers had started to calm down as of Friday, but they were angry when the news was first an- nounced. Some workers in the Port Perry plant will be particularly hard hit. The company employ- ees five or six married couples who will lose both incomes, Pol- lardsaid. Pollard said there will be on- going negotiations over sever- ance and compensation packag- es for workers. Under the law, workers with more than five years in a plant the size of Johnson Controls, re- ceive one week's salary for eve- ry year worked. The law does not require the company to pay severance to those with less than five years. Pollard, who has worked at the plant for over 13 years said company officials stated they are willing to give workers more than they are obliged to PLANT CLOSES, 280 JOBLESS under the law. But, he said de- tails have not yet been given out. There were no further details about compensation for work- ers available . Pollard did state the company and union will be- gin negotiating this week. A meeting of the union mem- bership is planned for February 24. Local MPs have been invit- ed to attend. The plant is located on the east side of the Oshawa Road, about half a mile south of the Port Perry town limits. Johnson Controls set up operations there in 1988, leas- ing the factory from A.G. Simp- son Ltd..

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