Whitby Free Press, 11 Mar 1981, p. 1

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Vol. 11, No. 10 Wednesday, March Il 28 Pages No new jobs, however -GM buys Firestone plant By MICHAEL KNELL Free Press Staff General Motors of Canada has purchased the dormant Firestone Canada plant in Whitby, however, it is not expected to create any new employment for the town. According to Richard C. Walter, vice-president and general manufacturing manager of G.M., the com- pany will move its export operations into the plant sometime late this summer. He added that during the next six months, the 372,800 square foot plant on 62 acres of land south of Highway 401, will be renovated. "The new site, all on one level, will provide a more ef- ficient, cost-effective operation than has been possible in the present three- storey west plant on Mary Street (in Oshawa), parts of which are more than 50 years old," he said. "At present, we have no plans for the old plant." G.M.'s export division employs about 500 people. They prepare G.M. car and truck componerts for ship- ment to assembly plants in Venezuela, Columbia, Equador, Chile and Zaire. According to Walter, its activities have increased dramatically from 240 vehicle sets per day last year to a rate of 432 sets this month. The world's largest automaker is to take possession of the plant on March 31. The plant was closed last July 18 throwing an estimated 650 people on the unemployment line. Since then, their union, the United Rubber Workers, has been trying to reach a separation settlement with the com- pany. A spokesman for G.M. said that Firestone has been moving its machinery out of the plant to make way for the purchasers operations. Under the URW's contract with Firestone, the displaced workers only have successor rights if the pur- chaser uses the facility for the rnanufacturing of tires or uses any of the Firestone machinery. Asked whether or not G.M. plans to hire any of the displaced Firestone workers, the spokesman replied "not necessarily" and pointed out that the workers in the present plant will simply be transferred to Whitby. G.M. officials were also reluctant to say how much they purchased the plant for. When Firestone took it over they paid $10 million for it and invested another $10 million in it. Recent real estate experts had put a value on the property and building of about $6 million. While G.M. spokesman said that he was "not going to release the price" of pur- chase he indicated that it was less than $25 million and probably over $10 million. Although he was disap- pointed about the lack of new job creation, Mayor Bob Attersley reacted favorably to the deal saying that it "was good for the region." Attersley said that they will fill a void in Whitby's economie life and that the town stands to gain about $250,000 (net) in industrial property and business taxes. "From that standpoint, I'm as happy as hell," Atter- sley said pointing out that when the plant was closed, Firestone did not pay the in- dustrial property tax rate or business tax on the site. He is, however, confident that the move will create new jobs in the future, calling G.M. "a good cor- porate citizen, they don't stand still." "I'm quite pleased about it," Attersley said. "It's bet- ter than having it (the plant) in mothballs and it will bring dollars into the town." Tip- toe thro ugh the tulips Whitby Mayor Bob Attersley and town caretaker Victor Veninga enjoy the aroma of the early blooming General Bell-Irving tulips in the town hall. These four tulips were part of 1,000 bulbs shipped to Whitby from Bloemendaal, Holland in appreciation of the part Canadian troops played in the liberation of Amsterdam during World War Il 35 years ago. The tulips were named after Major-General Bell-Irving of the Royal Canadian Army, now the Lieutenant-Governor of British Columbia. Veninga will be greeted at the Bloemendaal city hall on April 29 at 3 p.m. during his up- coming vacation in Holland. At that time he will present a plaque to city officials expressing thanks from the Town of Whitby. For the story see page 7. Free Press Photo by Stephen Greenaway ý - ý - -- - - Il 1 1 , - -ý - t - ý - --- - - à, ý , miý,--- ý - -- , ^ 7 - 7 ý ý -777m 7 -ý - - , ý->à ! ý ý! JÉ, ý ý i

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