Premier Dalton McGuinty is accusing Ottawa of being complicit in the loss of hundreds of jobs at a London locomotive plant.
He says foreign companies shouldn't be allowed to take over Canadian factories simply to shut them down and strip them of their equipment.
McGuinty is calling on Prime Minister Stephen Harper to review what he calls “outdated” investment laws that allow that to happen.
He says the federal tories have acknowledged that the Investment Canada Act is outdated, but failed to do anything about it.
McGuinty's comments come in the wake of U.S.-based Caterpillar's announcement last week that it plans to close the Electro-Motive plant following a labour dispute.
The company had asked its 450 employees to take a 50 per cent pay cut to help keep Electro-Motive going.