Last week, a manufacturing plant in Perth announced it will be closing its doors in a year, which means 380 employees will be out of work.
The closing of Grenville Castings and the sheer number of jobs lost could prove devastating to a community of 6,000 people.
Perth’s mayor John Fenik says the municipality has already reached out to the region’s member of parliament, Scott Reid, seeking federal support and financial aid to try and keep the plant open.
But Fenik says time is short.
“We have to find some options very quickly, within the next week or two weeks, to put on the table to see if that can change things,” Fenik said. “So time is ticking.”
Smiths Falls mayor Shawn Pankow says the layoffs will be felt across the region.
“When a large employer in the region shuts down, the impact is felt beyond the borders of that municipality,” Pankow said. “I know people from our community who work there who are going to be impacted.”
The plant in Perth manufactures castings and aluminum parts for vehicles.
- Gas prices surge in some parts of Canada. What’s causing pain at the pumps?
- Buzz kill? Gen Z less interested in coffee than older Canadians, survey shows
- Ontario premier calls cost of gas ‘absolutely disgusting,’ raises price-gouging concerns
- Netflix beats subscriber targets, but revenue falls short of forecast
Scott Worden, a spokesperson for Magna International, Grenville Castings’ parent company, told CKWS that despite the timing, the decision to close the plant has nothing to do with the current steel and aluminum tariffs between Canada and the U.S.
Fenik says he’s been told the same, but that he’s skeptical.
“I’ve been informed that the decision to close the plant was not based on the tariffs that are imposed currently on the material they make, but I can’t help but think that factored into it.”
U.S. President Trump has placed a 10 per cent tariff on aluminum — a material used by Grenville Castings.
Fenik says the manufacturer’s closing highlights how vulnerable the sector is.
“Grenville Castings is an unfortunate example of how profitability disappears in light of trade barriers.”
While seeking a solution, Fenik is calling on both the Canadian and American governments to end the trade war.
“I think from a federal and a national perspective the United states and Canada have got to get together because you know what these are real people.”
Barring a last minute solution, Grenville Castings will close its doors at the end of June 2019.
Comments