110 jobs gone as London manufacturer ceases operations

A London manufacturer is shutting its doors and throwing more than 110 people out of work because of a prolonged strike by sheet metal workers throughout Ontario.

The president and owner of Lor-Don, George Gallant, said an agreement has been reached with the union covering his plant, but all provincial locals must come to terms with contractors elsewhere in the province, including Toronto, before the London workers could return to the job.

Toronto where the bulk of the workers and contractors exist is "holding everybody ransom," Gallant said.

Gallant said he isn'twaiting for a resolution to the six-week-old dispute to make his move. "I'm thinking I might as well get out now, as opposed to dying on the vine five years down the road."

Union leader shocked

Gallant told workers of the closure in a letter on Friday. The newshit the local union leaderlike a bombshell.

"I was in disbelief, and quite frankly, I'm still in disbelief that this is really happening," said Mark Hall, business manager of local 473 of the Sheet Metal Workers International Association.

"I want to sit down with George and have a conversation, but I think, really, we have to get this strike over with [first]."

Hall said the main issue is working hours, not money. Sheet metal workers in Ontario now work 36 hours a week over four days. But contractors mainly in Torontohad been pushing for up to 44 hours over a five-day week.

However, Hall said Toronto area contractors indicated late last week that they might accept 37.5 hours, suggesting a deal may be close.

He thinks if an agreement is reached soon, Gallant might be persuaded to keep the plant open.

"I would like to think he would reconsider because he employs a lot of his family. He has three brothers there, a son a nephew [and] they count on him for a pay cheque every week. So I have a hard time believing that this is where we are."

Asked by CBC News if he would reconsider his decision, Gallant replied: "I can't say that I couldn't change my mind, but there's got to be a reason to change my mind. At this point, there is no reason to change my mind."

Lor-Don employs 70 unionized employees and about 40 non-union workers. The company has been in business in London for 58 years.