Last truck rolls off the line at Sterling Truck

More than a quarter-million trucks rolled off the line during the 11-year history of Sterling Truck, St. Thomas.

But this one, bearing a Canadian flag taped to the windshield, is the last.

Wednesday that truck, number 257,330, rolled off the line bringing an end to production at the South Edgeware Road facility.

Workers placed their hands on the vehicle and had pictures taken with a truck that marks the end of 17 years of truck construction here in St. Thomas.

"Now they don't build trucks in Canada anymore. It's brutal," said 16-year employee Gerald McCormick. He described the mood Wednesday as "sombre."

"It is the end of an era. You're never going to see another Sterling Truck start up at the plant," said Dave Elliott, president of CAW Local 1001."It's a sad day, a very sad day for our membership."

He said the truck was built for ABF Freight, a long-time Sterling customer.

Truck production at the South Edgeware Road site began in 1992 under the Freightliner truck brand. Production of Sterling trucks began in 1998 and at its height, the plant employed more than 2,000 workers.

Back in October, 2008, Daimler Trucks North American announced the end of the Sterling Truck brand, stating the last shift at the plant would be March 27 — the plant would close two days later.

Until that time, Elliott said the remaining 700 or so employees will decommission equipment and ship tools and parts to other plants.

As March 27 draws near, it's going to be tough, he predicts.

"When these people you've been working with for 16 years, they go their locker... and give their final goodbye and shake your hand... emotions are going to run very high that day."

The union's job action centre on Mondamin Street — which will relocate to Local 1001's office on Curtis Street shortly — will remain open until the end of 2010 to help unemployed workers find jobs, Elliott said.

"We all keep our fingers crossed that someone might buy the plant and would be interested in having representation from a union. But there's no guarantees there. That's only a hope."

Hoffa: Senate should reject death sentence for GM

What's ailing the auto industry in the United States is the same as what's ailing the industry in China, Japan, Europe and South America.

Carmakers around the world are struggling through the worst slump in 40 years. Sales of cars by Toyota and Honda fell more during the last year than did sales of cars by Ford.

For America's Big Three automakers, the bad news turned catastrophic last month. In November, 236,000 North American-made cars were sold. That is a shocking 40 percent drop from the number of cars sold in November 2007. No industry can afford a 40 percent sales decline.

Sure, mistakes were made. But the Big Three's dire straits are a result of frozen credit markets and a global recession.

Fortunately, many in Congress recognize that it's crucial to rescue the U.S. auto industry. The House has approved a bill negotiated with the White House that would use existing money for a short-term loan and restructuring of the troubled carmakers.

There are 1.59 million people employed by the Big Three, their parts suppliers and dealerships. As many as 5 million people depend on the auto industry for work, including Teamsters who haul cars, parts and supplies. Letting the domestic auto industry collapse would dramatically worsen a recession that's already a year old.

It would be disastrous to allow even one of the Big Three to seek bankruptcy protection. That would cause the failure of hundreds of auto parts companies and dealerships. The remaining Big Two automakers, dependent on the parts and dealer networks, would go under. Securitized auto loans and their insurers would fail, whipsawing fragile credit markets.

Another consideration: General Motors couldn't get financing for a Chapter 11 bankruptcy. So do the math. Bankruptcy for one automaker means GM closes its doors. For good.

There are some free-market wing nuts who are fine with that. We've all heard their arguments: "Since the automakers brought their problems on themselves, let them fail." Or, "Don't interfere with the free market."

But they ignore a lesson of the last century: America's peace and prosperity depend on a robust manufacturing base.

We would have lost World War II if we didn't have an auto industry that could produce weapons during the war. That's why Franklin Roosevelt called Detroit the "Arsenal of Democracy."

We would not have enjoyed record prosperity during the post-World War II era without a strong manufacturing base -- and productivity gains that were shared with workers.

In recent decades, we've taken our eye off the ball. Instead of shoring up our manufacturing base, we've favored the interests of Wall Street over other sectors of the economy. Nowhere is that more evident than in the ongoing, multitrillion-dollar bailout of irresponsible financial services companies. (By the way, I don't hear anyone complaining that the unions brought down Lehman Brothers.)

Now, Wall Street's follies are hurting the auto industry.

For those who would pull the plug on our domestic automakers, I ask them to consider that our economic competitors won't let their auto industries vanish.

The European Commission is offering $6.3 billion in industry loans for developing greener cars. The Swedish government said it's prepared to help out its automakers. Japan already subsidizes its auto industry by keeping the yen artificially low.

China's automakers, which are owned or controlled by the government, get research grants and loans from state-owned banks. They're asking the government for emergency help in the form of tax relief, lower gas prices and grants.

I hope Congress will take to heart Franklin Roosevelt's words: "The strength of this nation shall not be diluted by the failure of the government to protect the economic well-being of its citizens."