GM to lay off 750 workers at Oshawa plant, citing U.S. tariffs: union president
Company spokesperson confirms 700 people will be impacted, does not refer to move as layoffs
General Motors is laying off about 750 workers at its Oshawa Assembly plant as it makes changes to shifts due to U.S. tariffs, the president of the union representing workers said on Friday.
The plant, which employs roughly 3,000 people, is moving from a three-shift to a two-shift operation starting this fall, according to a news release from Unifor, which represents workers there.
"We will not allow GM to barter Canadian jobs to gain Donald Trump's favour," Lana Payne, Unifor national president, said in Friday's news release.
Payne called the move a "reckless decision that deals a direct blow to our members and threatens to ripple through the entire auto parts supplier network."
About 750 workers will be laid off at the plant, in addition to 1,500 people who work in other places throughout the supply chain, Payne told CBC Toronto.
GM spokesperson Marie Binette confirmed in an email the shift change "will impact approximately 700 workers," though she did not refer to the move as layoffs.
"We are committed to supporting employees through the transition," she said.
The layoffs come as workers in Oshawa's auto industry have been bracing for the impact of U.S. tariffs on their livelihoods. President Donald Trump slapped a 25 per cent tariff on all vehicle imports to the U.S. last month.
GM's Oshawa plant "will return to a two-shift operation in light of forecasted demand and the evolving trade environment," spokesperson Jennifer Wright said in an email to CBC Toronto on Friday.
"These changes will help support a sustainable manufacturing footprint as GM reorients the Oshawa plant to build more trucks in Canada for Canadian customers," she said.
The Oshawa plant assembles light and heavy-duty Chevrolet Silverado pick-up trucks for the North American market, which are also assembled at factories in the U.S. and Mexico, Unifor said.
GM has to provide six months notice of layoffs and that notice has now been issued, Payne told CBC Toronto.
"I will use every day in those six months to fight back with our members to try and get General Motors to reverse this decision," she said.
Government 'fighting hard' for auto sector, PM says
Prime Minister Mark Carney offered his "deepest sympathy" for affected workers and their families during his first major news conference since winning the federal election.
He said the government is "fighting hard" for the auto sector and is "making sure companies act in true partnership … in maintaining employment and investment in Canada."
"If not, there will be consequences for those companies," Carney said.
Payne said General Motors jumped the gun by announcing shift cuts before Carney and U.S. President Donald Trump began talks on a new economic deal, calling the move "premature and disrespectful."
Carney will meet Trump at the White House on Tuesday, multiple sources have confirmed to CBC News.
Unifor called on the federal government to "review and reconsider" GM's tariff-exempt status under Canada's remission framework in Friday's release.
This framework grants companies relief from paying retaliatory Canadian tariffs on products from the U.S., according to the government's website.
The union is also asking Carney to meet with automakers to reaffirm their commitment to Canadian investment and production.
Ford reacts, NDP demands Ontario come up with a plan
Ontario Premier Doug Ford said the news is "extremely tough" for workers and their families in a post on X on Friday.
"These are hard working people who have helped build Ontario's auto industry," he said.
The premier said GM has "reaffirmed its commitment" to the Oshawa plant, adding that it will continue building Ontario-made trucks "for years to come."
"We will continue doing everything we can to support a strong future for the facility and its workers," Ford said.
Today’s news from GM is extremely tough for the workers in Oshawa and their families. These are hardworking people who have helped build Ontario’s auto industry. GM has reaffirmed its commitment to the Oshawa plant, which will continue building Ontario-made trucks for years to…
—@fordnationMeanwhile, the Stellantis assembly plant in Windsor, which employs roughly 4,500 people, is shutting down next week — though the company has not pointed to tariffs as the reason behind the closure.
Ontario NDP Leader Marit Stiles called on Ford to deliver "a real plan" to keep auto jobs in Oshawa and Windsor in a statement Friday.
"Ontario's auto workers built General Motors and our province invested heavily in Stellantis," she said in a news release.
"We cannot just 'wait and see' while these companies take a page out of Trump's playbook and throw the future of thousands of workers and their families into chaos."
CUSMA exemption 'changes nothing': union president
Thursday saw a moment of relief for the North American auto industry, as it was announced automobile parts that are compliant with the Canada-U.S.-Mexico Agreement (CUSMA) on trade are exempt from the 25 per cent tariff, according to U.S. Customs and Border Protection guidance.
The exemption means Canadian-made auto parts shipped directly to American assembly plants will not be subject to the tariff, said Flavio Volpe, president of the Automotive Parts Manufacturers' Association, in an interview with CBC Radio's Metro Morning on Friday.
If auto parts from Canada and Mexico were tariffed, the additional expenses could shut down supply chains and result in the "failure of the American auto industry," he said.
But Payne said the new guidance "changes nothing" for the Canadian auto industry in Friday's news release.
"It is solely designed to keep U.S. factories running, because they rely heavily on Canadian made auto parts, while continuing to harm Canada's auto assembly plants," she said.
The union said GM intends to reduce Oshawa truck exports to the U.S. and recalibrate the plant for Canadian sales, starting in the fall.
"The question is … do Canadians buy those products in the same proportions as Americans do?" Volpe said.
"When they don't, that's when you see shifts slip."
People who want to support the Canadian auto industry should purchase vehicles with VIN numbers that begin with 2, which indicates they were built in Canada, Volpe said.
Close to 98 per cent of workers at the Oshawa plant were either laid off or went into retirement after GM closed the plant in 2019. Vehicle production resumed in late 2021.
Canada is a large market for GM, Payne told CBC Toronto, as the company sold 300,000 vehicles in the country last year.
"The reality is, if you sell here, you have to build here," she said.
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With files from The Canadian Press and Metro Morning