STAFF PHOTO/AMANDA PERSICO
Workers leave Magna's Exterion plant in Newmarket after their shift. Today, the auto parts giant announced it was closing this plant as well as another in Aurora, throwing 850 people out of jobs. The closure is to come in June 2009.
Newmarket
November 26, 2008 06:05 PM
Another 350 cut from Aurora plant
By Chris Traber and Teresa Latchford, Staff Writers
The 850 employees at Magna’s Exterion plants in Aurora and Newmarket found out first-hand the crisis the auto manufacturing and parts industry faces is going to get worse before it gets better.
Magna announced those jobs will be phased out by June 2009 and Conference Board of Canada economist Sabrina Browarski said this will be the norm for the parts industry next year.
Workers starting their afternoon shift at the factory off Mulock Drive arrived thinking yesterday was a day like any other.
Shift workers, who started at about 3:30 p.m. were called into a meeting not knowing what to expect.
“I got here and people said the place is going down in June,” said one employee who started work at the factory less than a month ago and who asked to remain nameless after employees were told not to speak to the media.
Another employee left the building and got into his car with a confused look on his face.
“I don’t understand too much. I don’t understand what happened,” the man, who has worked the factory for 21 years, said.
But for one employee, this is just an economic cycle that has hit the auto sector.
“I’m positive. I’m young. I’m healthy. I’ve done well here, it’s just hard times.”
The scene was much the same in Aurora.
“They said we’ll shut down on June 1 ... I’ll have to start looking for a new job,” 20-year employee Ricky Li said.
The closure was not as big a surprise for Bunny Taing, who has spent 20 years working in the shipping department.
“Everybody here is real sad. A lot of people have been here so long, it’s like a family,” he said.
Recovery will depend partly on government moves, but will heavily depend on the recovery of U.S. demands,” Ms Browarski explained. “We are anticipating the recovery to being in the U.S. in 2010 and only after that will Canada follow.”
As for the overall effect on the economy, the auto industry only accounts for 1.6 per cent of Canada’s gross domestic product revenues, but the regions with concentrated auto manufacturing industries, such as York, will be highly impacted. She hopes the government’s strategy to provide rapid training and job placement assistance, laid out in the 2008 budget, will help the unemployed find their way back into the workforce.
Hemi Mitic, assistant to the president of the Canadian Auto Workers Canada, agrees the pain of job cuts is not over.
Even though the two plants scheduled to close aren’t unionized, any shutdown catches the eyes of others.
“There are concerns in every factory. It’s of a crisis proportion,” he said. “We understand we can’t build cars if they aren’t selling, but it requires the levels of the government to ensure our jobs are protected.”
The union is continually lobbying the government to improve cross-border trade.
Exterion is a manufacturing division of Magna’s Decoma International operating unit. The company plans to close and consolidate its operations into other Decoma facilities within seven months, eventually ceasing Exterion’s operations at both locations, the company stated.
Employee departure dates will be determined by production schedules, company spokesperson Tracy Fuerst said yesterday.
“No one has been let go to date,” she said via telephone from Detroit, Michigan, where she serves as Magna corporate communications director.
“As of yet, we don’t know when the phasing will start.”
Aurora’s 350 employees and Newmarket’s 500 manufacture front and rear automobile fascias, including front grills, fenders and body side panels. Customers include a range of car manufacturers, including General Motors, Ford and Honda.
“The difficult decision to close the facility came after a careful evaluation of the facility’s financial status, future business and open capacity in other facilities,” a company release stated.
“Those factors, combined with the difficult economic conditions facing the North American auto industry due to reduced domestic production and customer demands, have made the Exterion operations no longer viable.”
Magna is a first class corporate citizen in the town of Newmarket, said Mayor Tony Van Bynen.
“I know the company would not have made this decision unless it was absolutely necessary,” he said.
More than 6 per cent of Newmarket’s labour force is in the automotive industry and many were affected by the significant announcement made today, Mr. Van Bynen said.
“That’s certainly an economic engine for Newmarket,” he said. “But our top concern is the impact this will have on residents and their families.”
Exterion will provide prior notice and/or severance packages based on years of Magna service and will offer outplacement assistance to further help employees, Ms Fuerst said.
“Most people ask if there’s a chance to transfer to other Magna facilities,” she said.
“It’s a large company and we are looking to assist wherever we can with transfers to other Magna family locations.”
The futures of the facilities at 200 Industrial Parkway North in Aurora and 402 Mulock Drive in Newmarket are unknown, she added.
Yesterday’s announcement was made in the wake of a Nov. 4 release stating Magna Closures, an operating unit of Magna International Inc., will consolidate its KTM (Concord), Dortec (Newmarket) and CMP (Bradford) facilities over the next few months, eventually ceasing operations at KTM by the end of July 2009.
— With files from Amanda Persico and David Fleischer