2,700 GM workers in Oshawa facing uncertain future
‘Devastating news’ for city as union told plant has no production allocated for 2019
Almost 2,700 General Motors employees and managers in Oshawa will be told Monday that as of December 2019, the company has not allocated any vehicles to the production line.
A global restructuring plan by GM — toward lighter and electric vehicles — appears to have put the plant’s future, employees’ jobs and the surrounding economy in desperate straits.
Officials at Unifor, the union representing 2,200 GM workers, hope a full year gives provincial and federal governments and the union time to work with the automobile company on a plan to save some or all of the jobs at a storied plant that first began production in 1958 with the Pontiac Strato Chief, Parisienne and Laurentian models and followed with 25 other car lines including the Chevrolet Camaro.
Currently, Oshawa produces the popular Chevrolet Equinox and three other vehicles, plus performs final assembly work on the Chevrolet Silverado and GMC Sierra pickup trucks shipped up from Indiana. Outgoing Oshawa Mayor John Henry (he will take over as Durham Region chair shortly) said in an interview he was shocked to hear the news because GM had recently made $500 million in improvements to the plant and “those trucks are selling like crazy.”
Speculation on Sunday among union and political sources revolved around whether the Oshawa plant would be affected by the recent announcement by General Motors in the U.S. to commit to a National Zero Emissions Vehicle Program, which it says could add more than 7 million electric cars to the road by 2030. No announcement has been made as to where those would be built. News on Sunday evening from some media outlets of a complete closure at Oshawa — forever — is wrong, according to Unifor.
“We have been informed that, as of now, there is no product allocated to the Oshawa Assembly Plant past December 2019,” Unifor said in a statement from national president Jerry Dias.
The last contract negotiations between GM and the union were concluded in 2016.
“I think of these families tonight and pledge to get to the bottom of why this is happening and whether the decision can be reversed.” ERIN O’TOOLE DURHAM MP
Unifor officials at the time lauded the contract with GM publicly for ensuring the sprawling plant would be in operation well past 2019.
Dias said that Unifor “does not accept this announcement and is immediately calling on GM to live up to the spirit of that agreement.” He said he has a scheduled meeting with GM on Monday to sort out the plan going forward.
The General Motors plant in Oshawa has faced this issue before over the years. Sources close to the situation say that there will be negotiations between federal and provincial officials with General Motors as to the next steps in Oshawa.
“This does not mean Oshawa is closing,” said a source close to the discussions, speaking on background. General Motors made no comment Sunday regarding Oshawa or any of its other plants. A Canadian GM spokesman, David Paterson, sent out a terse email saying “we have no news or comment tonight and won’t be commenting to others on speculation.”
A senior federal government official, speaking on background because the news was not publicly announced, told the Star’s Bruce Campion-Smith that the GM issue was “very devastating news.”
“We’re obviously very concerned with the reports and will be working very hard over the next few days to help the affected workers,” the official said, adding that it is believed that the decision is part of a broader restructuring that will touch GM operations across North America as GM seeks to move its vehicle lineup to more futuristic models, such a zero-emis- sions cars.
“It’s not only Canada. They are going to be focusing on future technology,” the official said.
He said the shakeup is not related to any of the trade tensions between Canada and the United States, such as the just completed talks for a new North American trade pact or the ongoing steel and aluminum tariffs.
“This is purely company led,” the official said.
Sources say Unifor was given little warning of GM’s decision. “We were dumbfounded,” one senior official a the union said late Sunday.
Erin O’Toole, conservative MP for Durham, said “this is devastating news to families in Oshawa, the Durham Region and all of Ontario. I think of these families tonight and pledge to get to the bottom of why this is happening and whether the decision can be reversed.”
Henry, whose father is a retired autoworker, said many things about the pending announcement by GM does not make sense. As mayor he said he had discussions with GM in Oshawa as recently as October and “there was no mention of this.” Henry was elected Durham Region chair in the recent municipal election. He pointed to the importance of GM to the area outside of the plant, including it involvement in the Automotive Centre of Excellence at the University of Ontario Institute of Technology. Henry added that GM also has research centres in Oshawa, Markham and other Ontario sites working on autonomous driving technology.
“There are always conversa- tions over the years with GM and Oshawa,” said Henry, who hopes there continues to be a strong future with GM in Oshawa. Incoming Oshawa Mayor Dan Carter said he could not answer questions until he officially became mayor later this month.
Automotive experts say it is likely that in any discussions with GM and the Canadian government there will be reference to the $10.8-billion bailout provided after the 2008-09 financial crisis.
GM’s Oshawa plant is spread over 5.1 million square feet. A union spokesperson said there are 2,200 unionized workers. The GM Oshawa website states there are 2,690 people working at Oshawa. The difference is likely accounted for by nonunion, management staff and executives.