Caterpillar has locked out about 450 workers at its Electro-Motive Diesel locomotive plant in London, Ontario, after labor contract talks broke down.
Officials of the Canadian Auto Workers reported that Cat wants to cut wages in half, from C$34 to C$16.50. Caterpillar has said that wages at the plant are twice those at Electro-Motive's LaGrange, Ill., plant.
Union officials call the offer an ultimatum. Company officials say the plant will not open without ratification of an agreement.