The Citizen, 1991-03-06, Page 13THE CITIZEN, WEDNESDAY, MARCH 6, 1991. PAGE 13.
Railway challenges NTA ruling on Brussels line
The National Transportation
Agency ruling that appeared to
have saved the CN Rail Line in
Brussels for another two years is
being appealed by CN.
The agency had ruled that CN
must operate the line for another
two years, even though the line had
lost money, because there was a
possibility the line could be made
profitable in the next two years.
That decision was based on infor
mation given to the Agency by
Foundry
lays off 90
workers
Western Foundry Company Ltd.
in Wingham announced recently
that about one third of its workforce
- 90 unionized workers - has been
laid off.
Wayne Phibbs, Vice-President
Operations, said the instability of
the marketplace has made it im
possible to estimate a recovery with
any certainty. Management is
studying possible reductions in
salaried staff as well.
The foundry, which has been in
Wingham since 1901, makes ex
haust manifolds and other parts for
the automobile industry. Prior to
current layoff it was running at
full-strength with 308 employees.
Severe cutbacks in automobile
production requirements have re
sulted in the layoffs. In the last two
weeks, auto manufacturers have
reduced their requirements far
beyond what had originally been
anticipated, according to a foundry
press release. In February alone, it
stated, 50 per cent of the automo
tive engine plants have been shut
down from one to three weeks and
more are expected.
“Even with the increased market
share that we were able to attain in
the last quarter of 1990, we have
not been able to offset these major
cutbacks,” the press release stat
ed.
Last fall, the foundry announced
the plant was working to full
capacity and with the purchase of a
foundry in Brantford, there were
plans to expand. The new plant, it
was hoped, would come into pro
duction in the fall of this year. Now,
Western could delay the expansion
as well.
Earlier this month, the foundry
applied to the province for a work
sharing program, which will come
into effect, April 1.
OPP
charge
young
offender
OPP have charged a young
offender with automobile theft
following an incident in Brussels on
Friday, March 1 at 1:15 p.m.
Staff Sgt. McKee of the Wing
ham detachment said that John
Lowe of Brussels left the keys on
the floor of his car when he stopped
at E.M.A. When he came out of the
building his car was gone.
The 1986 Chev station wagon
was found later in Listowel and the
young offender was apprehended.
Mr. Lowe said no damage was done
to the car.
Premdoor Limited of Wingham.
which said it expected to increase
its business. At about the same
time the NTA order was issued,
however, Premdoor announced cut
backs in production and in its
appeal, dated Feb. 15, CN points
out the new “circumstance of
Premdoor’s lack of further require
ment of rail service to Wingham”.
CN claims that Premdoor traffic
has been lost “The (railway) opera
tion cannot possibly be economic in
the foreseeable future.”
As proof of his claim, a letter
from Aikins, MacAulay and Thor-
valdson. Barristers and Solicitors -
representing Premdoor - is includ
ed with the CN application. In a
letter dated Feb. 13, Marshall E.
Rothstein of the firm writes,
“Within the last week ... circum
stances have changed with respect
to the operation of Premdor’s
facility at Wingham, Ontario, and
we feel obliged to bring these
changes to the attention of the
Agency and CN for whatever action
either of you may deem appropri
ate.”
As he explains, the Wingham
plant required the rail service to
import lumber for the production of
solid wood doors. “As a result of
the present state of the economy ...
Premdor has concluded that its
Wingham facility, as presently
operated, cannot be made profit
able in the foreseeable future.”
“As a result,” Mr. Robinson
continues, “its production of solid
wood doors at the Wingham facility
will be curtailed, thereby virtually
eliminating the need for rail trans
portation for inbound lumber.”
The facility will be retained for the
production of architectural doors.
Mr. Rothstein goes on to explain
that it was impossible for the
company to notify the NTA any
sooner about its plans, as the union
and workers at Premdor were
notified of the decision only on Feb.
12.
He concludes by writing, “Until
now, it had been Premdor’s inten
tion to continue operations al
Wingham as they had been conduc
ted in the past with the hope oi
increasing volumes once the reces
sion abated. However, circumstan
ces have forced the changes that
are referred to above.”
As grounds for its application,
CN points to Section 41 of the
National Railway Transportation
Act, 1987: The Agency may review,
rescind or vary any decision or
order made by it or may re-hear
any application before deciding if,
in the opinion of the Agency, since
the decision or order of the hearing
of the application, there has been a
change in the facts or circumstan-
ces pertaining to the decision,
order or hearing.”
In its request to the agency,
Terrance H. Hall, attorney, writes
for CN, “No or little opposition is
anticipated to this review.”
The Wingham Economic De
velopment Committee has been
active in ensuring that the line
would not be abandoned and made
a submission to the agency. Both
town council and the committee
strongly opposed the abandonment
of the CN line *
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