Navistar considers closing Canada plant

| 4/19/2002

About 900 employees at Navistar International's Chatham, Ontario, assembly plant have been given notice that company president Steve Keate is considering closing the plant if the truck maker fails to cut another $14 million in costs. The Chatham plant is International's largest assembler of heavy-duty tractors.

According to published reports, International has not met its goal to cut $28 million in fixed costs and the company continues to operate at a loss. International, which has already pink-slipped 1,300 employees, is required, as part of a 1999 collective bargaining agreement, to issue a one-year notice of any plant closure.

Negotiations between employees and management are scheduled to begin next week. "It's possible (the closure) can happen if we don't work together as a team," said Dave Boland, Chatham plant manager.