Ontario Government Commits to Alstom for Subway Car Production

The Ontario government is moving forward with a decision to sole-source the production of subway cars for the Toronto Transit Commission (TTC) to Alstom, based in Thunder Bay. This decision comes as part of a larger commitment to enhance Canadian content in manufacturing. Unifor Local 1075 President Justin Roberts confirmed that the majority of the assembly work will take place at the Thunder Bay facility, although final contract details remain under negotiation.

Roberts noted that both the provincial and federal governments are emphasizing a significant increase in Canadian content for this contract. “They’re striving for 60, 70, and even 80 percent for this contract,” he stated. Although negotiations are ongoing, he highlighted that this requirement could lead to higher production costs, complicating the final agreement. “Because those details haven’t been fully completed yet, we don’t have the contract officially assigned,” he added.

As negotiations continue, there has been no official announcement made to employees at the Alstom plant. Roberts described the current situation as “95 percent guaranteed” for workers, with the bulk of the assembly confirmed for Thunder Bay. He mentioned that final testing for the subway cars is expected to occur in Kingston, while significant sub-assemblies, such as under-frame roof components, may be produced at Alstom’s facility in La Pocatière, Quebec.

Member of Parliament Marcus Powlowski, who represents the Thunder Bay-Rainy River constituency, has been an advocate for securing the TTC contract for the local Alstom plant. He expressed optimism regarding the ongoing negotiations, stating, “My impression is that these negotiations are progressing very well.” Powlowski emphasized the federal government’s recognition of the importance of manufacturing in Canada, noting the long-standing tradition of producing high-quality rail cars at the Thunder Bay facility.

The substantial $2.3 billion contract involves the production of 70 six-car sets, which will replace aging trains on Line 2 and provide additional trains for the Yonge North and Scarborough extensions. In total, 420 cars will need to be constructed to meet the requirements of this agreement.

Both the provincial and federal governments are keen on fostering local manufacturing, which is expected to create hundreds of direct and indirect jobs in the Thunder Bay area. The collaboration between various stakeholders, including the City of Toronto and the TTC, aims not only to modernize the transit system but also to stimulate the local economy through increased manufacturing activity.

As the negotiations progress, the focus remains on finalizing the contract details, which could set a precedent for future projects emphasizing Canadian content in manufacturing. With significant investments at stake, both the government and Alstom are motivated to reach an agreement that aligns with their shared goals of economic growth and enhanced public transportation.