Thousands of employees at the General Motors plant in Oshawa, Ont., are bracing for devastating news today as government sources confirm the assembly plant is set to close in 2019.
It’s not clear how many of the 2,500 employees will lose their jobs as part of a global restructuring move to lower carbon emissions and prepare for a future of electric and autonomous vehicles, sources tell CBC News.
Unifor, the union representing autoworkers in Oshawa, said late Sunday it has not heard « complete details of the overall announcement, » but was told no vehicles are set to be assembled at the facility past December 2019.
« Based on commitments made during 2016 contract negotiations, Unifor does not accept this announcement and is immediately calling on GM to live up to the spirit of that agreement, » the statement read.
The union will hold talks with GM on Monday morning.
The Detroit-based automaker has been quiet on the expected move since news broke Sunday evening. A spokesperson told CBC News: « We have no news or comment tonight and won’t be commenting to others on speculation. »
Oshawa assembly plant
The Oshawa assembly plant, where GM Canada has its headquarters, produces the Chevrolet Impala and the Cadillac XTS cars, the majority of which are shipped south of the border, along with the Chevrolet Silverado and GMC Sierra pickup trucks.
The Oshawa complex is one of three GM manufacturing facilities in Ontario, along with St. Catharines and Ingersoll.
GM produces two cars, the Chevrolet Impala and the Cadillac XTS, at the Oshawa plant. (General Motors Canada)
The plant, about 60 kilometres east of Toronto, was headed for closure in June this year amid a slump in sales of passenger cars in North America, and specifically the U.S., for the two cars built in Oshawa.
Last month, GM ramped up its cost-cutting efforts by offering buyouts to thousands of white-collar workers with 12 or more years of service in both Canada and the United States.
The company has said it needs to be smaller to prepare for possible tougher times.
‘It’s going to affect the province’
The assembly plant has formed the backbone of Oshawa’s economy for more than 100 years. GM bought the plant in 1953 from McLaughlin Buicks, making it one of the biggest in the world.
Oshawa Mayor John Henry hopes the news of the closure is « just a rumour » because he claims the economic ripple effect will send shockwaves beyond its workers and their families.
« This isn’t just about building cars, » Henry told CBC News on Monday, noting he had not yet spoken to anyone from GM.
« It’s going to affect the province, it’s going to affect the region. »
Dozens of auto-parts businesses, as well as the companies that supply them, will also be affected. A wide array of local businesses, such as restaurants and retailers in Oshawa, could also feel the effects of the shutdown.
The Oshawa assembly plant, where GM Canada has its headquarters, produces the Chevrolet Impala and the Cadillac XTS cars, along with the Chevrolet Silverado and GMC Sierra pickup trucks. (Tijana Martin/Canadian Press)
Oshawa NDP MPP Jennifer French also decried the looming closure, calling it a « callous decision that must be fought. »
« GM did not build Oshawa. Oshawa built GM, » French said in a statement on Sunday, noting the proposed layoffs would greatly impact workers and their families.
« Words cannot fully describe the anxiety that my community is feeling at this moment. »