Left Menu
Development News Edition

UPDATE 1-Canada blindsided by GM Oshawa closure, workers walk out in protest

Reuters | Updated: 26-11-2018 22:52 IST | Created: 26-11-2018 22:52 IST
Canadian Prime Minister Justin Trudeau on Monday expressed his "deep disappointed" in General Motors Co's decision to close its Oshawa plant, a move Canadian officials only learned about on Sunday and which led workers to walk off the job on Monday.

Canadian officials promised to aid auto workers affected by the 2019 closure, part of a wider restructuring by the automaker that will cut production of slow-selling models and slash its North American workforce.

GM said the closure affects a total of 2,973 assembly line jobs. GM's total employment in Canada is 8,150 direct jobs.

"I spoke with GM (CEO) Mary Barra to express my deep disappointment in the closure," Trudeau tweeted on Monday. "We'll do everything we can to help the families affected by this news get back on their feet."

Ontario, home to the Oshawa plant, was told by the automaker that there was nothing it could do to prevent it, premier Doug Ford said. Oshawa is about 37 miles (60 km) east of Toronto.

"The first thing I said is, 'What can we do? What do we have to do?'" said Ford, referring to a Sunday night call with GM Canada's President Travis Hester. "He said the ship has already left the dock."

Ford later added: "We're disappointed in GM. We supported GM years ago when they were in trouble."

The Canadian and Ontario governments joined the United States in supporting GM with billions of dollars in aid after the automaker filed for bankruptcy protection during the severe 2009 global economic downturn.

Canada and Ontario also backed a 2005 investment by GM to modernize the Oshawa plant’s paint shop.

Canadian Innovation Minister Navdeep Bains said that GM "only made this official announcement to us yesterday."

A former Canadian auto executive said it would be difficult for Canadian government officials to entice GM further to keep the plant open.

"The government has done everything they could to keep them afloat. Obviously incentives by themselves don't keep a car plant open," said the executive, speaking on condition of anonymity because of the sensitivity of the matter. "It's all about getting a product mandate," or a commitment to produce a specific vehicle.

Workers in the Unifor trade union walked out of the Oshawa plant "in protest," ahead of a meeting with GM about the announcement, a union spokeswoman said.

"I've moved my family twice for this company and they do this to me," a tearful worker told CBC TV as he left the plant.

Under Unifor's four-year contract signed in 2016, GM must give the union a year's notice before closing the plant. The automaker intends to close the plant in December, 2019.

A 2015 study commissioned by Unifor, which represents GM employees, estimated that shutting the plant would eliminate 4,100 direct jobs and reduce Ontario's gross domestic product by C$1.1 billion. (Reporting by Allison Martell in Toronto and Allison Lampert in Montreal; Editing by Jeffrey Benkoe)


TRENDING

OPINION / BLOG / INTERVIEW

5G will be the key driving force for COVID-19 recovery: Here's how?

... ...

Canada’s COVID-19 pitfalls highlight need for integrated health information system

In the globalized world of today where outbreaks can spread far and wide within a matter of days, a global-level integrated health information system is ideal but Canadas provincial barriers show that the country lags much behind in deployi...

Pandemic must be impetus, not obstacle, for clean water access

To make matters worse, there are suspicions that the inadequacy of wastewater treatment methods in California, the rest of the USA, and indeed around the world may help to propagate the disease even more widely. ...

3D printing and the future of manufacturing post COVID-19

The on-demand, customizable, and localized manufacturing of product components facilitated by 3D printing has the potential to redefine manufacturing but there are certain technical, mechanical, and legal limitations that, unless ...

Videos

Latest News

California encouraged by trends even as it passes 600,000 coronavirus cases, most in U.S.

California became the first U.S. state to surpass 600,000 cases of COVID-19 on Friday and the Midwest saw several record one-day rises as some states struggled to contain the pandemic even as a few welcomed students back to school campuses....

U.S. loses Iran arms embargo bid as Putin pushes summit to avoid nuclear deal showdown

The United States lost a bid to extend a U.N. arms embargo on Iran on Friday as Russian President Vladimir Putin proposed a summit of world leaders to avoid confrontation over a U.S. threat to trigger a return of all U.N. sanctions on Tehra...

EXPLAINER-What is the U.S. threat to trigger 'snapback' of U.N. sanctions on Iran?

The United States on Friday failed in its attempt to extend a U.N. arms embargo on Iran, and Washington could now act on a threat to trigger a return of all U.N. sanctions on Tehran.Here is a look at the events leading to the showdown and a...

Trump, France's Macron voice concern about Greece-Turkey tensions -White House

U.S. President Donald Trump and French President Emmanuel Macron expressed concern over increased tension between NATO Allies Greece and Turkey during a call on Friday, a White House spokesman said.NATO allies Turkey and Greece are embroile...

Give Feedback