Suddenly jobless auto-parts workers shocked and angry at lack of notice, severance

Employees of Progressive Moulded Products Ltd., some with more than two decades experience, complained bitterly about learning their plant was shutting down from news reports and said they had received no severance.

"We leave here empty. Nothing going home in the pocket," said Alvin Graham, 60, who had worked for Progressive for 10 years.

"It's pretty rough."

The workers' predicament underscored the challenges facing Ontario's economy, especially its manufacturing sector. Government figures released Thursday show the province's economy shrank 0.3 per cent between January and March.

"It hurts; I don't know where I'm going next," said Dipak Patel, 41, a technician whose previous employer also went broke.

"To me in Ontario, manufacturing is going to be dead within one year."

All day long, hired transport trucks drove out with salvaged machinery from the company's headquarters north of Toronto, forming a long line at one point on the main road in front of the plant. Dozens of security guards kept watch as suppliers paced up and down, waiting to see whether they might retrieve tools or other equipment.

Crushed by more than $500 million in debt, Progressive Moulded Products, which employed 2,800 mostly non-unionized workers, announced two weeks ago it was seeking protection from its creditors.

This week, the company suddenly closed 11 Toronto-area plants - which made plastic trim parts for General Motors, Ford and Chrysler - throwing more than 2,000 people out of work.

"As a result of a number of major customers electing to move their business elsewhere, we are undertaking immediate and drastic reduction in our operations and workforce," spokesman Michael Daniher said Thursday.

"Obviously, the fact that upwards of 90 per cent of the company's revenue has just left does not augur well for the future."

Progressive is just the latest player in Central Canada's auto-parts industry to feel the pinch from a precipitous drop in demand for gas-guzzling SUVs and other larger vehicles produced by the Big Three automakers.

Sales of cars and light trucks fell 5.7 per cent in June compared with a year ago, and 13.6 per cent from May, according to DesRosiers Automotive Reports.

General Motors, the country's largest automaker, was particularly hard hit as sales plunged 23.8 per cent from a year ago. GM announced last month its truck-assembly plant in Oshawa, Ont., would be among four of its North American plants slated for closure, meaning about 2,600 people would lose their jobs.

Canada's largest auto-parts maker, Magna International Inc., also announced last month it was cutting 400 jobs at its plant in St. Thomas, Ont., due to flagging truck sales.

Buzz Hargrove, head of the Canadian Auto Workers union, accused the Ontario and federal governments of failing to act on the industry's crisis.

"We're just losing literally thousands and thousands of jobs in both assembly and parts - closures, shift reductions - but our government says don't worry about it."

While Graham struggled to compose himself as he stepped into his car for what was likely his last drive home from the plant, other workers were furious.

"We had no idea the company was going out of business. These people don't respect us. They don't care about us," said Evette Anderson, who worked as a machine operator.

"We were just thrown out on the street to go straight to the garbage bin."

Daniher had no information on possible severance payouts but said the company had no choice than to shut the plants quickly.

"The company naturally appreciates and regrets the impact of the news and the way in which a number of folks had to learn about it," said Daniher.

"Unfortunately, events sort of overtook the company and necessitated the speedy response."

Progressive also has three plants in the United States.

Two of those facilities were have been shuttered, with the elimination of 300 jobs.