Northerners fear losing jobs, transportation links

The unions representing Ontario Northland workers say they're bracing for job losses.

The province announced Friday itwill start winding down the Ontario Northland Transportation Commission.

Commercially viable parts of the operation, such as rail freight, rail refurbishment and Ontera Telecommunications could be sold. But some services like passenger rail between Cochrane and Toronto will be cancelled.

Brian Kelly, a spokesperson for the unions, said he believes job losses are a certainty.

"We don't see it as being a positive for anybody, any unionized worker or management here at Ontario Northland, Kelly said. There will be job losses we think massive job losses."

Will 'hurt' northern businesses

The Ontario Northland announcement came as part of the provinces bid to balance its books over the next five years.

However Vic Fedeli, the MPP for Nipissing, said losing transportation links would hurt businesses in the north.

"We know that companies are going to need rail service, we know they are going to need bus service, we know they are going to need telecommunications service," Fedeli said. "So we are going to be monitoring as close as we can to make certain that services continue."

So far this year, the province has spent $103 million on Ontario Northland. The province said the current business model is no longer affordable. For example, there is a subsidy of $400 per passenger for the Northlander service between Cochrane and Toronto.

But Linda Savory-Gordon, a spokesperson with the Coalition for Algoma Passenger Trains a lobby group for better rail service in northern Ontario said a lack of investment in rail service is to blame for poor ridership.

"Both levels of government, both provincial and federal, have not attended to passenger service," Savory-Gordon said "Therefore people are [saying], oh, it is not very functional, and so they tend not to use it."

The province will continue to subsidize some rail services, such as the Polar Bear Express train that links the James Bay Coast to Cochrane.

Ontario Northland employs nearly 1,000 people.