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In a significant victory for approximately 190 workers affected by the sudden closure of the Adient seating plant in Tillsonburg, Ontario, an arbitrator has awarded each worker 14 weeks of additional pay for violating a promise to give six months notice of a plant closure. The 14 weeks pay is in addition to severance and notice of termination pay already received by the workers.
The award comes after Adient Seating Canada, formerly Johnson Controls Ltd., abruptly closed its Ontario facility in November 2022, moving operations to Tennessee and Kentucky and laying off nearly 200 workers without notice.
The Tillsonburg plant, which had produced polyurethane seating foam for the automotive industry for more than five decades, was shuttered without providing six months’ notice of closure as required under the collective agreement. Unifor filed a grievance shortly after, arguing that Adient had breached the collective agreement’s Letter of Understanding (LOU) on Plant Closures.
“This decision is about fairness and justice for our members who gave decades of their lives to this company,” said Lana Payne, Unifor National President. “When employers like Adient make heartless decisions to uproot themselves, they often do so with little regard for their workforce and the communities that made their success possible. This arbitration award is an important reminder to these companies that unions and workers cannot and will not be taken for granted. When we fight, we win.”
The arbitration award will grant affected workers with 14 weeks of additional pay in lieu of notice. In addition, the arbitrator’s ruling agreed with the union’s perspective that employers are obligated to provide notice to both the union and employees. The decision will make it more difficult for other companies to ignore their obligations to both workers and the unions that represent them.
“Our members were left in a devastating position after decades of loyal service to Adient,” said Unifor Local 1859 President Dave McDowell. “This award will help them recover a portion of what they lost, both financially and in terms of dignity. It shows that their union will always fight for them and ensure their rights are respected.”
Alongside the payout to employees, the arbitrator ordered an additional $10,000 in additional damages to the union, citing Adient’s failure to consult the union and discuss the impacts of the closure, which was the intended purpose of the notice requirement.
“We’re proud to have fought for and won what our members are rightfully owed while also setting important precedents that protect workers across the province,” said Unifor Ontario Regional Director Samia Hashi. “This ruling found that workers were right all along—Adient’s decision to close the Tillsonburg plant without warning was not just callous, it was a clear breach of our collective agreement. This win shows that unions will hold employers accountable to the very last word of the collective agreement.”