General Motors (GM) is reducing operations at its Oshawa, Ontario, plant, leading to an estimated 1,200 job losses across the company and its Canadian supply chain. The decision, which includes eliminating a third production shift, has triggered strong criticism from Unifor, Canada’s largest private-sector union, which alleges GM prioritized U.S. political pressure over the livelihoods of Canadian workers.
Layoffs and Impact on Workers
Approximately 500 direct GM employees at the Oshawa facility will be laid off as the company scales down production. GM will continue to build next-generation full-size gasoline-powered pickup trucks at the plant, but at a reduced capacity. An additional 700 job losses are expected among suppliers and related businesses in the surrounding area, further compounding the economic impact.
Jeff Gray, president of Unifor Local 222, expressed the anxiety felt by workers: “You feel very nervous and anxious that you can continue to provide a living for yourself and your family.” This sentiment reflects the uncertainty facing hundreds of households.
GM’s Support for Affected Employees
GM is providing severance packages to affected hourly employees, including supplemental unemployment benefits covering 70 percent of their weekly income for up to two years (depending on seniority), alongside full healthcare coverage. The company will also offer counseling, mental health support, and job transition assistance, such as resume writing and interview coaching.
Union Backlash and Political Response
Unifor national president Lana Payne sharply condemned GM’s decision, stating the company “caved to Donald Trump rather than stand up for its loyal Canadian workforce.” She warned that GM’s persistent reduction of its Canadian production footprint could harm its market dominance in Canada.
Ontario Premier Doug Ford called the move “very disappointing” and pledged provincial support for impacted workers, including opportunities in sectors such as defense and life sciences.
Shift to U.S. Production
The eliminated third shift in Oshawa will be relocated to GM’s Fort Wayne, Indiana, plant. The move underscores a broader trend of automotive manufacturers consolidating production within the U.S. amid shifting trade dynamics and political incentives.
This decision highlights the vulnerability of Canadian manufacturing to cross-border economic and political pressures. The reliance on a single employer, in this case GM, underscores the risk for workers and communities when industrial policy fails to prioritize domestic job security.
The long-term implications of this shift remain to be seen, but it raises questions about the future of automotive manufacturing in Canada and the potential for further job losses if similar decisions are made.
