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OTTAWA
| Jan. 30 , 2009 — While
the Canadian Auto Workers (CAW) union complains its members were
snubbed by a recent military truck deal between the federal government
and the United States, Navistar says the price of retooling a Canadian
truck plant for the job is too high.
 |
| Canadian Defence Minister Peter MacKay announced
the purchase of American-made military logistics trucks from Navistar
on Jan. 9, much to the dismay of Canadian auto workers. |
In early January, the federal government awarded a $254 million
US contract to Illinois-based Navistar International Corp. to build
1,300 medium-duty trucks at its Garland, Texas, plant for the Canadian
Forces.
Navistar also manufactures trucks in Chatham, Ont., where workers
are angry the work is going to the United States.
"The lack of Canadian content requirements for public purchases
is killing jobs in this country," says Aaron Neaves, president
of CAW Local 127, which represents Chatham's Navistar plant. "The
federal government just doesn't understand the destruction caused by
Canada's crumbling manufacturing base and high unemployment in the area."
Navistar sent out 500 layoff notices, effective Feb. 1, to its Chatham
workforce last November. Another 200 employees
will lose their jobs in March, which will leave the plant with
only 200 workers and facing the threat of closure.
Workers want answers
In a letter to National Defence Minister Peter MacKay, CAW president
Ken Lewenza said the Department of National Defence (DND) should
revisit plans to buy trucks in the United States.
| 'Your government must recognize
how critical it is to ensure that Canadian tax dollars are spent
to put Canadians to work.' |
"Your government must recognize how critical it is to ensure that
Canadian tax dollars are spent to put Canadians to work."
MacKay says the tendering was done through Public Works and Government
Services Canada based on the specs set out by National Defence. Alan
Williams, former assistant deputy minister (Materiel) at National Defence
says if Canadians want to buy in Canada, they shouldn't focus their
anger on MacKay.
"Those people should focus on Public Works and Industry and say:
'It is more important for us to buy things that are Canadian-made, so
will you please get your act together and have cabinet approve direction
to DND to buy first and foremost in Canada?'"
The CAW has launched a 'Buy Canadian' campaign calling on governments
to buy goods and services from Canadian suppliers wherever possible.
But Navistar spokesperson Elissa Koc says, it's not feasible to modify
the entire Chatham truck plant for such a small order.
"We have multiple facilities, and each one is set up to produce
certain types of vehicles," she says from Warrenville, Ill. "Texas
got the deal because the CF [Canadian Forces] purchased medium-duty
trucks, which falls within that plant's operating capability."
She says the Chatham plant only builds heavy-duty trucks like those
that haul trailers on intercity routes.
Truck manufacturers Mercedes and Western Star participated in the beginning
of the truck solicitation process, but only Navistar submitted a bid
last summer.
New trucks still benefit Canadian economy
The new trucks, dubbed Military Commercial Off The Shelf (MilCOTS)
vehicles, will replace Canada's nearly 30-year-old fleet, says Lt.-Col.
Greg Burton, director of land requirements co-ordination for the Canadian
Forces. They are commercial trucks that will be slightly modified for
military use in Canada to support domestic operations.
He says even though Americans will be constructing the trucks, the
project still benefits Canada's economy.
"Yes, it's an American company, but a lot of the components that
they will use there are Canadian-made, in Canadian factories, that will
be shipped down to the [United] States, assembled, and then the completed
product will be shipped back here."
The deal includes a regional benefits clause which requires Navistar
to match the $254 million contract with equal purchasing in Canada
over seven years.
Koc says the contract will benefit Canadian companies including a Michelin
Tire plant in Nova Scotia, DEW Engineering in Ottawa, Active Gear of
Canada in Toronto, CN Rail in Edmonton and DBG Metal Manufacturing in
Mississauga, Ont.
Truck production will begin this summer. Navistar will deliver 600
trucks during the 2009 fiscal year, with the last truck delivered by
July 2010. 
|
Navistar
International Corp. 
