THUNDER BAY — Temporary but lengthy layoffs are coming to the Alstom rail car plant in Thunder Bay.
TBNewswatch has learned details of a layoff plan that was communicated to workers on Tuesday.
Alstom will lay off the bulk of its 400 employees in stages, starting next month.
Approximately 300 workers are affected, including some who will be off the job for up to 12 months.
Others will be unemployed for four to five months.
The layoffs are necessary because a contract for bi-level cars for a U.S. customer is winding down while work on new contracts isn't ready to start yet.
Alstom Thunder Bay will build 60 new streetcars for the Toronto Transit Commission, and will also refurbish 94 GO Transit rail coaches for Metrolinx.
However, production won't start until later this year.
As those projects ramp up, workers will start to be recalled in late summer or early fall.
A return to current employment levels is anticipated by March or April 2023.
In November 2021, Alstom Americas President Michael Keroullé said these two projects would guarantee around 400 jobs at the plant for two years and bolster the company's efforts to secure larger contracts.
The company reiterated to its workers on Tuesday that the pair of contracts allows Alstom to avoid a permanent closure of the plant.
In fact, it said, it ensures a solid base on which to improve productivity competitiveness.
Management believes the overhaul project for Metrolinx sets up the plant for future expansion of its commercial opportunities and to pursue more modernization and overhaul work.
The layoff announcement did not come as a surprise to the unions at the plant.
"I think they're disappointed, but they did know it was coming," said Dominic Pasqualino, president of Unifor Local 1075.
"The good news is that it looks like there's gonna be enough work for a couple of years...But at that point we're going to have this thing happen all over again," he said, unless the plant gets a big contract such as an order for subway cars for Toronto.
Peak employment at the plant in recent years was 1,200.
Alstom says the industry is cyclical, and that reality did not change when it took over from Bombardier last year.
Officials insist that the market for mass transit vehicles is growing, and is supported by economic recovery plans that focus on investments in infrastructure.
The company says it's confident that current market conditions fully support a critical mass of about 400 employees in Thunder Bay.
It's also crediting the ongoing support of partners at all government levels for its ability to continue operating in Ontario.
