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3000 jobs on the line as GM looking to close Canadian factory

3000 jobs on the line as GM looking to close Canadian factory

General Motors is to announce on Monday the closure of a factory in Canada, putting almost 3,000 jobs at risk, Canadian news media reported.

The decision is part of the US automaker's plans for a comprehensive global restructuring, channel CTV reported Sunday, citing several anonymous sources. Other media, including Radio-Canada/CBC, had similar reports.

The plant in Oshawa, about 60 kilometers (40 miles) northeast of Toronto, was built in 1953, according to the manufacturer's website.

It currently employs 2,800 people and assembles Chevrolet and GMC pickups as well as Chevrolet Impala and Cadillac XTS sedans, the website says.

"I'm hoping it's just a rumour," Oshawa Mayor John Henry said.

"Until we hear something, we don't know."

Henry said that his father, two brothers and a sister either worked or are currently working at the GM plant.

"I worked there as a contractor," he added.

Unifor, the labour union representing plant auto workers, said they have not heard "complete details of the overall announcement," but were told that no cars are slated for assembly at the plant 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 said.

The union planned to hold talks with General Motors on Monday.

GM officials in Canada did not immediately respond to an AFP query.

GM has three other sites in the province of Ontario. It is unclear whether they will also be affected.

Last month, the company announced plans to reduce its North American workforce to save money through voluntary redundancies, and did not rule out the possibility of layoffs.

The job cuts could affect 50,000 employees across the US, Canada and Mexico.

About 18,000 of them, or 36 per cent of the workforce, are eligible for voluntary redundancy.

GM posted earnings of USD 2.5 billion for the quarter ending September 30, despite the impact of trade tariffs and slipping sales. (AFP)



(With inputs from agencies.)



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