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www.oakvillebeaver.com The Oakville Beaver, Friday July 4, 2008 - 7 Troubled Polywheels filing for bankruptcy Continued from page 1 "We are almost finished our closure agreement," Pike said Thursday evening. "And at that time (July 10) we will be filing for bankruptcy. Our customers are actually removing tools as we speak." The move means 250 salaried and hourly workers at the plant in Oakville are unemployed. Nine employees at the company's engineering, design and sales office in Troy, Michigan are also affected. "It is a tragic event and what I said to the employees I talked to here is that if all of our employees, hourly and salaried, agreed to work for free for the next year, we still couldn't change the economic conditions that are global that are affecting our business," he said. "The point is that there isn't anything anyone could do or help or prevent in our plant and it is really tragic because it is outside of our control." Polywheels Manufacturing management and the union have been in negotiations since workers arrived to the plant on Monday to find it closed indefinitely. "We are now negotiating the plant closure language," said James McKenzie, president of Canadian Auto Workers' Local 1256 union. "What we have done is secured all of the owed wages and we have secured all of the accrued holiday or vacation pay. That was not secure until yesterday (Wednesday) and we will continue to negotiate the plant closure language." Polywheels manufacturers compression molded parts for a wide variety of markets, with its largest clients being in the automotive industry. Rising gas prices, the high Canadian dollar and the recent announcement of the impending closure of the GM truck plant in Oshawa have led to the closure of the plant, according to Pike. Benefits were suspended earlier this week. This has been particularly devastating for plant workers, according to McKenzie. "Because of the dynamics of bankruptcy protection, there is no obligation by the bank or the company to continue and they have cut the benefits off," he said. "We are in negotiation for an extension of those benefits. We've got married couples that both work at the plant who have been completely devastated and we have people that also require benefits and also require substantial medication and/or treatment." The local union representing the Polywheels Manufacturing workers plans to file an application with the provincial court in conjunction with the July 10 court date, according to McKenzie. The union is asking that members be recognized as preferred creditors, he said. In the meantime, a mass filing is being made to the federal government for unemployment insurance. Resumes are also being expedited to other union offices of the Canadian Auto Workers. "There is no obligation by the bank nor owners of the plant to make a severance contribution, which is a bloody down 11 small plants in the Toronto area. In that case, 2,000 jobs have been lost. The company makes plastic instrument panels for automobiles. EXPANSION SALE ON NOW! CHRIS KORNACKI / OAKVILLE BEAVER DOORS SHUT: Workers at the Polywheels factory in Oakville showed up for work on Monday, June 30, only to be told that the factory was now closed. shame," McKenzie said. "It is long overdue that the federal government be forced into recognizing that the people who have a severance entitlement be put with the preferred number one creditors." However, late Thursday afternoon, Pike revealed that he is hopeful that some sort of severance packages will be made available to workers. How large the packages will be and who gets them will not be finalized until early next week. "We haven't finished conducting discussions and it won't be until noon Monday that we will come to some understanding on that," Pike said. "They have been advised that there is some arrangement that is being negotiated. It won't be much, but there will be something." The announcement of Polywheels Manufacturing's plight came just days before another Toronto-based company, Progressive Moulded Products Ltd., confirmed Thursday it was shutting COME VISIT OUR NEW 10,000 SQUARE FOOT SHOW ROOM! Made In Canada Sofas from $699 DON'T PAY RETAIL! FACTORY OUTLET SALE INSTALLATION OF CROWN MOULDING, OUTDOOR & INDOOR COLUMNS BY PROFESSIONAL FINISH CARPENTERS COLUMNS New for the Do-It-Yourselfers premade corners for all our profiles Over 70 smooth or patterned profiles $1189 Solid Wood Table & Six Chairs Choice of Chair Style and Choice of Finish WAINSCOTING Made In Canada $2698 Solid Birch Bedroom Suite Queen Bed $789, King Bed $949 Included: Queen Bed, 2 night tables & dresser. Choice of Stain deas. Showroom In Home Design Consultation Available. Hours: Mon-Fri 9-5, 201 Millway Ave., Unit 6 (One light north of Hwy. 7 & Jane) Thurs until 7, or Sat 10-3 www.elitemouldings.com 1029 Speers Rd., Oakville 905.842.3739 Speers Rd. & 4th Line (Main Location) WWW.JOSHUACREEKFURNITURE.COM 905-760-1665 416-245-1115 5