Ont. auto parts plant cuts 720 jobs

Tag : cut parts

"We're all going to keep our fingers crossed that the economy willturn around," he said. "If the economy is slow, the auto industryis slow but if the economy can turn itself around, then maybe thesejobs don't have to be lost."
Dan Reith, the board chair of the St. Thomas Chamber of Commerce,said it's ironic that Sterling Truck announced these layoffsbecause the company spearheaded the community's 1980s revival aftermassive layoffs.
"Sterling Truck was key in the regenesis of St. Thomas and helpedus get into the industry boom again," he said. This week's layoffnotice, however, is simply reflective of the current, more tenuous,state of the economy, he added.
But Reith predicts that the community, which has four majoremployers including Sterling Truck, will survive these layoffs.
"We have a strong economy here. I would say that we have beenthrough this in the past. We weathered it and we will come throughagain," Reith said.
Still, Reith said, the chamber of commerce calculates that, forevery manufacturing job lost in the community, seven other jobswill be affected.
"Whether it's Tim Hortons, a dry cleaner's or a car dealership,when you look at 720 who lose their jobs, this is going to impactthe region."
Moreover, the Sterling Truck cuts are not the only ones expectedfor the auto industry in St. Thomas.
In September, 400 jobs are expected to be lost at MagnaInternational Inc., an auto plant that builds truck frames forGeneral Motors pickup trucks.
Numerous job losses at auto plants across the country have beenannounced in the past few months, largely due to rising fuel pricesand a worsening U.S. economy.
A spokesperson for Sterling Truck, based in Michigan, could not bereached for comment early Thursday.
St. Thomas is about 30 kilometres south of London, Ont.


© Canwest News Service 2008