General Motors has announced a reduction in shifts at its Oshawa Assembly Plant due to auto tariffs imposed by the United States.
The plant will go from a three-shift to a two-shift operation starting this fall “in light of forecasted demand and the evolving trade environment,” GM Canada said in a statement released May 2.
It said the changes would allow for a more sustainable manufacturing footprint as GM reorients the Oshawa plant to build more trucks in Canada for Canadian customers.
“GM has been building vehicles in Canada since 1918, and we are implementing a plan to keep building here for Canadians for another 100-plus years,” the automaker said. “The company will work with our partners to support employees through the transition.”
Unifor, which represents 3,000 employees at the factory, called the decision “reckless” in a May 2 press release, saying the impact could ripple throughout the entire auto supplier industry.
“GM needs to reverse this short-sighted move before more damage is done,” said Unifor National President Lana Payne.
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Payne described the move as “premature and disrespectful,” noting that U.S. President Donald Trump and Prime Minister Mark Carney had not yet met to discuss tariffs. The two leaders are expected to meet on May 6 at the White House.
Trump imposed 25 percent tariffs on Canadian vehicles on April 3, which included a carveout for American-made car parts that are compliant with the United States-Mexico-Canada Agreement, and Carney announced reciprocal tariffs of the same amount on the same day. The White House had planned to introduce similar tariffs on auto parts this weekend, but the U.S. Customs and Border Protection released guidance May 1 saying parts compliant with the trade deal are exempt.
Reactions
Prime Minister Mark Carney said during a press conference the same day that the news was a “terrible manifestation” of the trade dispute between Canada and the United States.
“I’ll just express my deepest, sympathy for [workers] and their families. A very difficult time,” he said.
Carney reiterated his previous commitment that the government would support industries impacted by tariffs, and that the revenue from Canada’s reciprocal tariffs on the United States would go to support workers. He said companies needed to continue acting to maintain employment investment in Canada, “and if not, there will be consequences for those companies.”
Industry Minister Anita Anand said in a statement that she was “profoundly disappointed” to hear of the incoming layoffs at the GM plant. Anand said she is seeking clarity from GM Canada’s president on the situation.
“It is my firm expectation that auto manufacturers follow through with their commitments to Canadian industry and their workers — with no exceptions. We will be reviewing the level of tariff relief that our government has provided to GM,” she said in a follow up post.
On April 15, Ottawa announced it would support automakers by allowing them to import a certain number of U.S.-assembled vehicles into Canada tariff-free. However, Ottawa said that the relief granted to Canadian automakers is contingent on their continuing to produce vehicles in Canada and complete planned investments.
“The number of tariff-free vehicles a company is permitted to import will be reduced if there are reductions in Canadian production or investment,” the government said in a statement.
Ontario Premier Doug Ford reacted to the news of the GM plant slowing production, saying it was “extremely tough for the workers in Oshawa and their families.”
