'I don't believe it's a bluff': Accuride jobs may be on the line as union and company hope for sale

There are 180 jobs on the line at Accuride in London Ont. as the company restructures.

The North American division of the firm has filed for protection from its creditors in Canada and the U.S. – and this comes as unsettling news for the employees represented by Unifor Local 27.

The plant has been an east London fixture since it opened as Firestone in 1968, and for three decades, up to 800 employees enjoyed high wages and benefits.

However, in the ensuing years, Accuride became the site of a bitter strike, downsizing, and wage concessions.

Now, employees have been blindsided by the Chapter 11 filling in the U.S. and a Companies' Creditors Arrangement Act application in Canada.

The development comes just as contract talks in London were slated to begin.

 "I don't believe it's a bluff," said Luis Domingues, a Unifor Local 27 National Rep, representing workers.

Unifor Local 27 National Rep Luis Domingues, seen on Oct. 16, 2024. (Sean Irvine/CTV News London)

He got wind of Accuride’s plans just a few hours ahead of employees.

“Members are worried. This is a big blow," he conceded.

Still, Domingues told CTV News London that he was told the company is set on selling the business, not closing it.

“Look, the message we received from the employer is that they're going to do their damnedest to sell it. We have had no discussions of plant closures with them - their message is they're going to take some time and make sure they can find a buyer for a great quality product and great workers. Hopefully, the jobs stay in the community and with the families that need them,” said Domingues.

Accuride in London Ont., seen on Oct. 16, 2024. (Sean Irvine/CTV News London)

The company says it will take up to 100 days to complete the restructuring. It has acquired $30 million from its lenders to keep operations moving as usual.

That assures workers they’ll be paid through Christmas.

Domingues hopes a sale will be secured before then, arguing the London plant is a tempting investment, “I do believe that the product is so good, and the business case is so good, that we should find the buyer for that place.”

Unionized workers at Accuride currently earn between $24 and $44 per hour.

In a statement to CTV News, a spokesperson for Accuride wrote, "Accuride is in an active sale process to determine if there is a buyer for our London facility. If a sale cannot be consummated, we will begin to wind down that location. We are working with our customers to understand their requirements, which will determine the timeframe for a potential wind down, if a sale cannot be completed."