'Clear risk to jobs': Trade dispute with Saudi Arabia worries General Dynamics workers

A high level of anxiety could be felt as hundreds ofworkers at the General Dynamics factory inLondon, Ont., waited and watched for details on the future of arms contracts with Saudi Arabia.

The U.S.-based company entered into a $15-billion Cdn deal as a supplier in 2014 tobuildlight armoured vehicles for the Saudi Arabian government. Maintenance crews from the Ontario manufacturer were also expected to be embeddedat multiple locations throughout the kingdom.

With that countrynow threatening newsanctions on trade, the impact on jobs both at General Dynamics Land Systems (GDLS) and its 500 Canadiansuppliers are at risk.

"There is an absolute clear and present risk to jobs," said UniforLocal 27 president Jim Reid, who represents 470 factory workers at GDLS. An additional 1,500 non-unionized peopleare also employed at the Londonheadquarters.

"There's a lot of anxiety, but let's hope cooler heads prevail on the Saudi side," Reid said.

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General Dynamics spokesperson Doug Wilson-Hodge declined to comment on the situation, includingwhat it could mean for existing and future contracts.

But he saidGDLS exports 90 per cent of its products, with the majority of current business dependent on Saudi Arabia.

Balancing jobs and human rights

Thisdiplomatic dispute is again raising questions about doing business with a country that has a history ofhuman rights violations.

NDP MP Irene Mathyssen, whose London-Fanshawe riding includesthe GDLSfactory, said she supports the Liberal government'sposition to stand up for human rights. But she questionedthe role Ottawa has played over the years in facilitating contracts with Saudi Arabia.

"We as a nation need to deal with reliable business partners, allies, not a country that's going to go to such extremes over a tweet," Mathyssen said.

• Canada's arms deal with Saudi Arabia includes 'heavy assault' vehicles

CBCNews was the first to report details of the deal that had been kept sealedunder a confidentiality agreement demanded by the Saudi government.It showed 928 light armoured vehicles were ordered, with 119 LAV 6 vehicles to be fitted with 105-millimetre cannons.

The remaining vehicles include ambulances, mobile command posts, VIP transports and recovery vehicles equipped with cranes.

Mathyssenflatly denounced the deal,which she said contributes to warfare. But she alsocalledon Ottawa to make clear how it plans to protectworkers and their families from what is a very difficult situation.

Saudi ambassador visits London

Canada's ambassador has been ordered to leave the country, though CBC News has confirmedDennis Horakwas inToronto on annual leave.

Saudi Arabia's ambassador, Naif Al Sudairy,paid a visit to Londonin April 2018 and met with the Ontario city's mayor, highlighting just how deep the business ties are between the city and the Saudi Kingdom.

Ed Holder, London's mayoral hopeful and former Conservative MP in the Harper government, also met with the ambassador when he was chair of the Canada-Saudi Business Council.

In a statement Monday, Holder said he hopes Saudi Arabia will honour the preapproved contract with GDLS despite the recent friction between the two countries.