Union says workers can't be paid severance because GM and Chrysler haven't paid their bills
Jun 24, 2009 - 05:10 PM
By Reka Szekely
AJAX -- Employees have set up a blockade at an Ajax car parts plant after being told on Monday they were out of a job and wouldn't be paid severance.
BBi Enterprises Inc.'s Ajax plant manufactured hood and dash acoustic insulators for General Motors, Chrysler and Toyota, said Steve Batchelor, president of Canadian Auto Workers union Local 1090.
Last week, the workers were told BBi was no longer a viable company and would be wound down and closed by the end of July, said Mr. Batchelor.
But things were different when the workers came in on Monday.
"Just before 9 a.m., they were told BBi was no longer in operation, they were out of work and there was no money for severance packages," said Mr. Batchelor.
Questions to BBi enterprises were directed to the company's head office and calls to the company's Michigan headquarters were not returned by press time.
There were 20 workers left at the plant and a total of 68 eligible for severance pay of up to 24 weeks for their 24 years of service. Mr. Batchelor estimates the workers are owed about $1.2 million.
"Then GM, Chrysler and Toyota indicated they were coming into the facility to pick up all their tooling ... (so) we put the blockade up," said Mr. Batchelor.
The union says BBi has indicated they can't pay severance because they haven't been paid by GM and Chrysler. Mr. Batchelor said GM officials showed up for the equipment with the police, the sheriff and an injunction on Tuesday, but the workers didn't budge.
Meanwhile, there have been negotiations with the Toyota supplier BBi has a contract with to pay a portion of the severance based on the proportion of work for that company, he said.
"General Motors has indicated they're in court again today and will be back to serve notice again this afternoon. We're not letting them in," said Mr. Batchelor.
Terry Essery, who has worked at the plant for 18 years and is the committee member for Local 1090, said, from what he's heard, the company was doing fine until GM and Chrysler stopped paying their bills.
"We're here for the long haul until we get what's owed to us," he said, adding workers have done what they could to keep the plant going including bringing in their own toiletries like soap and paper towels for the lunch room to save costs.
The fight now is not to keep their jobs, but for the pay owed to them.
"Myself and my wife work here, so that's our household income," said Mr. Essery. "We really need this severance to carry us until we can find something."
He's especially upset about that auto bailout dollars his taxes are paying for.
"Each and every one of us helped with the bailout, so we're upset they're putting the thumbs on the little guy."
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