Wednesday, September 10, 2008

Two sides dispute why Simmons closed Ont. plant

A four-week strike by plant workers was not the reason Simmons Canada decided to close its Brampton facility, according to the Canadian Auto Workers.

"The company began moving machinery out of its facility on the first day of the strike [on Aug. 15], after tabling an offer the union was bound to reject," said Hemi Mitic, assistant to CAW president Ken Lewenza on Tuesday.

On Monday, the mattress-maker announced it was closing the Brampton plant, located outside of Toronto, saying the strike was causing an "unacceptable loss in revenue and customer business."

"The decision to close our Ontario plant was not an easy one, but we feel it is necessary in order for Simmons Canada to maintain its market share and preserve our customer base," said Simmons Canada Paul Bognar in a statement.

The CAW's Mitic said, however, that Simmons started moving materials out of the factory as soon as the strike began.

"They had told us they wanted to move some of the finished stock to some customers. And we agreed to let them do that. Then, all of a sudden, they started dismantling the machinery," Mitic said in an interview.

With the closure, 145 workers will lose their jobs.

Concessions sought: CAW

The company had been demanding huge giveaways in contract negotiations, Mitic said.

For instance, Simmons wanted its workers to fund their own long-term disability plans, something that previously the company had covered, he said.

Simmons said it will replace the Brampton production by getting 25 per cent of the production from operations in Quebec and Alberta while the remaining product will be made in facilities in the United States.

The Simmons closing is the second time this month that a CAW-unionized facility was shut in Ontario.

On Sept. 2, Deere & Co., the makers of John Deere tractors among other products, said it was shuttering a facility in Welland in southern Ontario at a cost of 800 jobs.



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