From the Toronto Star
Auto workers occupy Scarborough plant
Severance pay at root of grievances at bankrupt parts company
March 31, 2007
Canadian Press
Disgruntled auto workers occupied a plant in Scarborough today and say they won’t leave until the company agrees to pay severance to 200 laid off workers.
Doors were barricaded and about 100 workers inside were preventing production at the Collins & Aikman plant, which is scheduled to close at the end of July.
Bob Chernecki, assistant to the Canadian Auto Workers’ president, said the company told them the U.S. operations are refusing to release the money for severance.
Collins & Aikman, which manufactures automotive floor and acoustic systems as well as cockpit modules, filed for bankruptcy in the U.S. in May, 2005.
The company is aware of the situation and was trying to work toward a resolution, said a company spokesman.
“We are in a continuing dialogue with CAW and our customers to see if we can work constructively and cooperatively,” said David Youngman, who noted the company has one week to pay severance.
Chernecki says there were a few hundred workers outside the plant as well.
He says the purpose of the occupation is to force the company into complying with a previous agreement to pay severance to the fired workers.
“They have absolutely every obligation, lawful and otherwise, including an agreement with us, our union — CAW, to pay that severance out.”
