STATEMENT FROM ED HOLDER ON THE
ELECTRO-MOTIVE DIESEL LABOUR SITUTATION

Many of you have contacted me regarding the ongoing labour situation at Electro-Motive Diesel (EMD) in London, Ontario.

EMD is a private company that is currently engaged in a labour situation with their employees who are represented by the Canadian Auto Workers (CAW).  I strongly support continued EMD operations in London and the employment it provides and I hope a satisfactory resolution can be found for the sake of the employees and their families.

I am aware that the EMD situation places stress and hardship on the employees and the community and that there have been calls for the federal Government and others to intervene in this situation.  The Federal government does not have jurisdiction over this labour dispute.  The Government of Canada holds jurisdiction over federally-regulated workplaces, Crown Corporations, and the federal Public Service.  Some have pointed to the example of recent federal labour disputes at Canada Post and Air Canada (one a Crown Corporation, the other a federally-regulated workplace) as examples of federal intervention.  EMD is a private company and is not a federally-regulated workplace. 

This labour situation falls entirely under the jurisdiction of the Province of Ontario and not the Government of Canada.  Thus, the Government of Canada cannot intervene in this labour dispute.   CAW Local 27 knows this very well and I would strongly encourage them to ask the Government of Ontario to make its position known. 

Some have suggested that direct financial benefits were provided by the federal Government to EMD and this is simply not the case.  An announcement was made at the EMD plant a few years ago to highlight tax changes that would benefit the customers of EMD and other related manufacturers.  Both the Standing Committee on Industry, Science and Technology and the Standing Committee on Finance had recommended an increase to the Capital Cost Allowance (CCA) rate on rail equipment. Budget 2008 increased the CCA rate for railway locomotives to 30 per cent from 15 per cent. This change ensured that the CCA rate for railway locomotives better reflects the useful life of these assets. It also encourages rail operators to acquire a newer, more fuel-efficient fleet of locomotives (e.g. hybrid locomotives), which provide a more environmentally-friendly mode of transportation.  This change is effective for new locomotives acquired on or after February 26, 2008, as well as for reconditioning and refurbishing costs incurred on or after February 26, 2008.

Again, it is my hope that both parties are able to find a satisfactory solution for the employees of EMD quickly to ensure long-term competitive operations in London.  Thank you for allowing me to share my position with you and I would appreciate it if you could forward this message along to anyone you feel may be interested.

Kind regards,

Ed Holder, MP

London West