GM cuts 500 Canada jobs, strikes manufacturing again to US

Basic Motors introduced Thursday it can get rid of roughly 500 jobs at its Oshawa, Ontario meeting plant when operations return to 2 shifts starting on 2 February. Unifor, Canada’s largest private-sector union, estimates that as much as 1,200 employees throughout the broader automotive provide chain will even be affected by the manufacturing reduce.

GM spokesperson Jennifer Wright instructed Reuters that the ability will proceed constructing next-generation full-size inside combustion engine pickup vans supported by a contemporary funding of CA$280m (US$207m). In a press launch, the automaker characterised the transfer as ending a short lived measure supposed solely to fulfill post-pandemic pickup truck demand and replenish depleted inventories.

Wright denied any connection to US tariffs—and the related persistent threats by President Donald Trump towards Canada—or the nation’s not too long ago launched coverage permitting for 49,000 Chinese language-made electrical automobiles to be imported into the nation at a 6.1% tariff fee. However regardless of characterising the third shift as a short lived measure to fulfill spiking demand, manufacturing is definitely being transferred to GM’s Fort Wayne, Indiana facility, which already manufactures full-size vans.

Unifor Nationwide President Lana Payne lambasted the automaker on this foundation. “Basic Motors has made a transparent choice to cave to Donald Trump quite than arise for its loyal Canadian workforce, making the employees in Oshawa pay for that appeasement with their jobs,” she remarked. “It’s misguided for Basic Motors to suppose it may get away with persistently diminishing their manufacturing footprint in Canada and nonetheless be the primary vendor of automobiles within the Canadian market. GM’s choice will not be solely short-sighted however fails to recognise the temper of Canadians and Canadian employees.”

Unifor introduced GM with a proposal to retain the third shift till fall 2026 contract negotiations, which the corporate rejected. All hourly seniority staff affected by the manufacturing adjustment will obtain GM-paid Supplemental Unemployment Advantages combining with Employment Insurance coverage to equal 70% of normal weekly earnings, together with continued healthcare protection. Ontario Premier Doug Ford—who had not too long ago stood with the automaker in calling for a boycott of Chinese language EV imports—referred to as the choice “very disappointing” and pledged provincial help for affected employees in defence, life sciences and different sectors.

The announcement got here throughout the identical week GM reported greater than US$12bn in pre-tax earnings for 2025, alongside plans to spice up shareholder returns by way of dividend will increase and a US$6bn share buyback programme. It ought to be famous that GM Canada has invested greater than CA$2.6bn in Canadian manufacturing over the previous 5 years.

The Oshawa discount marks the most recent blow to Ontario’s automotive sector, with GM’s CAMI Meeting Plant in Ingersoll and Stellantis’ Brampton facility each at present idled with out confirmed product allocations. GM introduced in October it will cancel manufacturing of its BrightDrop electrical van—manufactured in Canada—citing gradual improvement within the industrial electrical car van market, with a associated cost anticipated in fourth-quarter outcomes.

Unifor continues demanding that federal authorities automotive coverage undertake a “promote right here, construct right here” framework for producers working in Canadian markets.