Ontario Government Moves Forward with Sole-Source TTC Subway Contract for Alstom

The Ontario government is finalizing plans to award a sole-source contract for the production of subway cars for the Toronto Transit Commission (TTC) to Alstom in Thunder Bay. This decision is expected to have significant implications for local manufacturing jobs and Canadian content requirements. According to Justin Roberts, president of Unifor local 1075, the majority of assembly work will take place at the Thunder Bay facility, although the contract is still under negotiation.

Roberts emphasized that while the details are not yet finalized, both the provincial and federal governments are pushing for a higher Canadian content in the production contract. “They’re striving for 60, 70, and even 80% Canadian content for this contract,” he stated. This push comes as part of a broader initiative to bolster domestic manufacturing. Negotiations are ongoing regarding the associated costs of achieving these content levels, and until they are resolved, the official contract cannot be assigned.

The potential contract involves the manufacture of 70 six-car sets, which will replace aging trains on Line 2 and support extensions to the Yonge North and Scarborough lines. In total, this comprises 420 cars that need to be constructed as part of the $2.3 billion project.

Local Impact and Government Support

Local Member of Parliament Marcus Powlowski has been advocating for the contract to be awarded to the Alstom plant in Thunder Bay. He expressed optimism about the negotiations, stating, “My impression is that these negotiations are progressing very well.” He also confirmed that the federal government acknowledges the importance of supporting Canadian manufacturing, particularly at the Alstom facility, which has a longstanding reputation for producing high-quality rail cars.

Powlowski highlighted the collaborative effort between federal and provincial governments, as well as the City of Toronto and the TTC. “The federal government looks forward to partnering with the province of Ontario, the City of Toronto, the TTC, and Alstom to manufacture these subway cars in Thunder Bay, creating hundreds of direct and indirect jobs in the process,” he remarked.

The Thunder Bay plant is set to handle most of the final assembly work, with additional components potentially being produced at Alstom’s facility in La Pocatiere, Quebec. Final testing for the subway cars is anticipated to take place in Kingston.

Next Steps and Expectations

As negotiations continue, the workforce at the Thunder Bay plant remains hopeful. Roberts indicated that while an official announcement has not been made, there is a strong likelihood that the work will come to fruition. “We’re sitting in a state where we’re 95% guaranteed the work,” he noted.

Both the provincial and federal governments are under pressure to establish a contract that meets their high Canadian content goals, which could influence future manufacturing projects across the country. As details unfold, stakeholders from various sectors will be watching closely to see how this contract impacts local economies and employment in the region.

In summary, the Ontario government’s decision to sole-source the TTC subway car contract to Alstom represents a pivotal moment for local manufacturing and Canadian industry, with significant implications for jobs and economic growth in Thunder Bay and beyond.