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Lear to Close Canada Plant Where Workers Rejected Contract
Lear Corp. says it will shut down its Canadian seating plant in Ajax, Ont., after 94% of workers there rejected a tentative contract reached earlier with their Unifor union.
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Lear Corp. says it will shut down its Canadian seating plant in Ajax, Ont., after 94% of workers there rejected a tentative contract reached earlier with their Unifor union.
The company says it has withdrawn the proposed agreement and all prior offers. The move will eliminate more than 300 jobs.
Lear attributes its decision in large part to the overwhelming rejection of the proposed agreement on wages and benefits. But it also cites unspecified “recent developments” involving the plant’s sole customer, Fiat Chrysler Automobile NV’s assembly plant in Brampton, Ont.
The Brampton complex makes Chrysler 300 sedans and Dodge Challenger coupes and Charger sedans. U.S. sales of those three models last year shrank 4% to 204,100 units, according to Autodata Corp. Demand declined 2% in the first quarter of 2018.
Lear says it will shut down the Ajax facility as soon as practical but not until it completes its current supply contract between the factory and FCA.
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