- GM is cutting the third shift at its Oshawa, Canada plant.
- Production is moving to Indiana’s Fort Wayne truck facility.
- Canadian officials criticized GM’s shift as a political decision.
General Motors is scaling back operations at its Oshawa plant in Canada, a decision that could result in up to 1,200 job losses throughout the supply chain. The move, which includes ending the plant’s third shift, has sparked immediate backlash from the country’s largest private-sector union, Unifor, which accuses GM of putting U.S. political pressure ahead of Canadian workers.
Read: GM’s Boss Isn’t Thrilled About What Canada Has Agreed To
GM Canada confirmed on Thursday that approximately 500 of those affected are direct employees at the Oshawa facility, who will be laid off as production is scaled down. The company says the Oshawa plant will continue building next-generation full-size gasoline-powered pickup trucks.
“We did everything we could … we’ve made our arguments to General Motors,” said Jeff Gray, president of Unifor Local 222, during an interview with CBC on Wednesday. “You feel very nervous and anxious that you can continue to provide a living for yourself and your family,” Gray added, reflecting the uncertainty now facing hundreds of workers.
In addition to the layoffs at the plant itself, roughly 700 more job losses are expected throughout the surrounding supply chain, according to Canadian estimates.
What Will Laid-Off Employees Receive?
All hourly seniority employees impacted by the production change will be eligible for supplemental unemployment benefits covering 70 percent of their regular weekly income, along with full healthcare coverage.
Depending on how long each worker has been at the facility, those benefits could extend from nine months to nearly two years. GM also says it will provide access to counseling, mental health support, and job transition services such as resume writing and interview coaching.
Union Pushback Intensifies
Unifor national president Lana Payne, who represents workers at the site, is none too happy with GM’s move.
“General Motors has made a clear decision to cave to Donald Trump rather than stand up for its loyal Canadian workforce, making the workers in Oshawa pay for that appeasement with their jobs,” she said.
“It is misguided for General Motors to think it can get away with consistently diminishing their production footprint in Canada and still be the number one seller of vehicles in the Canadian marketplace. GM’s decision is not only short-sighted but fails to recognize the mood of Canadians and Canadian workers.”
Production Moves South
The third-shift production that would have continued in Oshawa is now being transferred to GM’s plant in Fort Wayne, Indiana.
Reacting to the announcement, Ontario Premier Doug Ford told CTV News that the provincial government would offer help to those impacted and called the company’s decision “very disappointing.”
“We are going to make sure they have opportunities in the defence sector, life sciences sector, other areas, and we will be there for them 24/7,” Ford said.
