By Lily Bearings
©2004-2008
Timken Canada's St. Thomas plant is shutting down for two weeks and worries are escalating more downtime may loom.
The plant makes bearings used throughout industrial settings, but plunging vehicle sales, plant closings and slowing production across industry has meant dwindling demand.
"This is a ripple effect directly related to industry," said Bob Hammersley, chief executive of the St. Thomas Chamber of Commerce.
"Anything that moves has a bearing in it and this is indicative of what is happening in automotive and manufacturing," Hammersley said.
The shutdown announced yesterday will see 355 workers off the job and is a direct result of the economic downturn, said Timken's Lorrie Paul Crum.
"It's not to save money for the company, it's reflecting the fact that we don't have orders to justify running production," she said.
"It doesn't make sense to build inventory because we need to be producing what our customers need."
But there are fears in the city's labour community that a temporary shutdown now may be a sign of a more serious downturn in future. The plant laid off 48 workers in November and has offered retirement and buyout packages, said Dave Kerr, president of the St. Thomas and District Labour Council.
"That raises a red flag. I can see them going through a tough storm," said Kerr. "Six months ago, this plant was going seven days a week, two shifts they were running.But now, orders are changing daily. People leave work and come in the next day to find orders cancelled or changed."
Timken is an industrial landmark in St. Thomas, anchoring the city's manufacturing sector since the 1940s, said Kerr.
"If you are in manufacturing you need their stuff. There are not a lot of plants making bearings."
Last week, Statistics Canada reported the London and area unemployment rate stood at an 11-year high, and manufacturing lost 3,500 jobs in February compared to January.
In fact, the number of unemployed in London Census Metropolitan Area -- which takes in London, Middlesex County and St. Thomas -- climbed by 1,700 in February, pushing the unemployment rate here to 8.4%.
St. Thomas has been hit hard by manufacturing losses, with several plants closing, including 2,000-worker Sterling Truck. It shuts its doors March 27.
Timken workers have until March 20 to accept the retirement offer.
"It's for anyone who wants to take a voluntary lump sum, so we would have the opportunity to align ourselves according to production levels," said Crum.
Crum wouldn't say if layoffs could soon follow.