U.S. tariffs have prompted two major manufacturing companies in Canada to lay off workers and halt production.
About 750 workers at the General Motors assembly plant will be laid off by the auto manufacturer as it shifts its production strategy to deal with the ongoing trade war.
The Oshawa facility, which currently employs about 3,000 people, will be impacted by the tariff-driven adjustments.
Unifor’s Lara Payne described the change as “a reckless decision that deals a direct blow to our members” and warned of potential ripple effects across the entire auto parts supply network.
About 750 workers will be laid off at the Oshawa plant, with an additional 1,500 workers impacted throughout the broader supply chain, Payne told CBC Toronto.
However, GM spokesperson Marie Binette confirmed the change will affect “approximately 700 workers,” though she refrained from calling it a layoff.
In an official statement, GM explained that the plant would return to a two-shift operation “in light of forecasted demand and the evolving trade environment.”
GM aims to re-align the Oshawa plant’s production with Canadian customer demand by focusing more on building trucks for the domestic market.
“These changes will help support a sustainable manufacturing footprint as GM reorients the Oshawa plant to build more trucks in Canada for Canadian customers,” said GM spokesperson Jennifer Wright.
On the same day, Unifor called on the federal government to review GM’s tariff-exempt status under Canada’s remission framework, which grants companies relief from paying retaliatory Canadian tariffs on U.S. imports.
Stellantis is also shifting production lines to avoid U.S. tariffs, announcing that its Windsor, Ontario, assembly plant would be temporarily closing for a week starting May 5, affecting 3,800 workers.
In response to GM’s decision, federal Minister of Public Services and Procurement, Anita Anand tweeted on X; “The federal government is entitled to revise these previous commitments (tariff relief and subsidies), should we not see a long-term investment and production plan in Canada.”
Anand also tweeted, “It is my firm expectation that auto manufacturers follow through with their commitments to Canadian industry and their workers, with no expectations, we will be reviewing the level of tariff relief that our government has provided to GM.”
GM’s Oshawa plant was previously closed in 2019, and production only resumed in late 2021 to account for an increased need for pickup trucks in the US.