Tariff Trouble: GM Cuts 750 Jobs at Oshawa Facility

The president of the union that represents workers announced on 2 May that General Motors is cutting off roughly 750 employees at its Oshawa Assembly facility as it adjusts shifts because of US tariffs.

 According to a news release from Unifor, the plant, which employs about 3,000 people, will switch from operating on three shifts to two shifts beginning this autumn. Unifor would not permit GM to barter Canadian jobs in order to win over Donald Trump.

Lana Payne, national president of Unifor, described the action as a careless choice that directly affects Unifor's members and might have repercussions for the whole network of auto parts suppliers. In addition to the 1,500 employees who work elsewhere in the supply chain, the plant will lay off about 750 workers, Payne told a media house.

The shift change "will impact approximately 700 workers", according to GM spokesman Marie Binette's email, though she did not call the action a layoff. "We are committed to supporting employees through the transition," she stated.

Why Company Decided for a Layoff?

Workers in Oshawa's car industry have been preparing for the effects of U.S. tariffs on their livelihoods, and now they are facing layoffs. Last month, President Donald Trump imposed a 25% duty on all automobile imports into the United States.

In an email to a media company, GM spokesperson Jennifer Wright stated that the company's Oshawa facility will resume operating on two shifts due to anticipated demand and the changing trade situation.

As GM refocuses the Oshawa facility to produce more trucks in Canada for Canadian consumers, these adjustments will contribute to a sustainable manufacturing footprint. According to Unifor, light and heavy-duty Chevrolet Silverado pickup vehicles are produced at the Oshawa factory for the North American market.

These trucks are also assembled at plants in the United States and Mexico. As per Payne, GM has already given the required six months' notice of layoffs. She stated that during those six months, she will fight back with her members every day in an attempt to persuade General Motors to change its decision.

PM Offers Sympathy to Affected Workers

In his first significant press conference since winning the federal election, Prime Minister Mark Carney expressed his "deepest sympathy" for the impacted employees and their families. The government is "fighting hard" for the auto industry, he added, and "making sure companies act in true partnership … in maintaining employment and investment in Canada."

"If not, there will be consequences for those companies," Carney stated. Payne called the announcement of shift reduction by General Motors before Carney and US President Donald Trump started negotiations on a new economic agreement premature and disrespectful.

Under Canada's remission framework, Unifor urged the federal government to "review and reconsider" GM's tariff-exempt status. According to the government's website, this framework exempts businesses from paying retaliatory Canadian tariffs on US goods.

 In order to reiterate their dedication to Canadian investment and production, the union is also requesting that Carney speak with automakers.