GM to cut shifts at Oshawa plant, cites ‘evolving trade environment’

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By News Room 4 Min Read

The union that represents approximately 3,000 auto workers at the General Motors plant in Oshawa says it is planning to reduce the number of shifts at the plant.

Unifor said in a statement released Friday morning that the Oshawa Assembly Plant will go from three shifts to two starting this fall, citing tariffs imposed by U.S. President Donald Trump.

“Cutting the third shift at Oshawa Assembly is a reckless decision that deals a direct blow to our members and threatens to ripple through the entire auto parts supplier network,” said Unifor National President Lana Payne. “GM needs to reverse this short-sighted move before more damage is done.”

A General Motors spokesperson confirmed to CityNews that the Oshawa plant will be returning to a two-shift operation “in light of forecasted demand and the evolving trade environment.”

“These changes will help support a sustainable manufacturing footprint as GM reorients the Oshawa plant to build more trucks in Canada for Canadian customers,” GM said in a statement. “The company will work with our partners to support employees through the transition.” 

It’s believed upwards of 1,000 jobs could be affected by the move, but neither side provided an exact number.

The news comes in the wake of updated guidance from U.S. Customs and Border Protection on Thursday that Canadian auto parts makers will be spared additional U.S. tariffs, which were set to take effect this weekend.

On March 26, Trump announced 25 per cent tariffs on auto imports into the United States, describing them at the time as “permanent” as part of a plan to foster more domestic manufacturing.

However, earlier this week, Trump amended that order to make it easier for vehicles that are assembled in the U.S. with foreign parts to not face prohibitively high import taxes.

In the updated note from U.S. Customs, auto parts that fall under the Canada-U.S.-Mexico (CUSMA) trade agreement will not be subject to the new tariffs.

Unifor says the new guidance changes nothing for the Canadian auto industry, adding, “It is solely designed to keep U.S. factories running, because they rely heavily on Canadian-made auto parts, while continuing to harm Canada’s auto assembly plants.”

The Oshawa Plant assembles light and heavy-duty Chevrolet Silverado pick-up trucks for the North American market, vehicles also assembled at factories in the United States and Mexico.

As part of its plans, GM says it intends to reduce Oshawa truck exports to the U.S. and recalibrate the plant for Canadian sales, starting in the fall.

The union statement says it expects the federal government to immediately review and reconsider General Motors’ tariff-exempt status under Canada’s remission framework.

“Canadians invested millions to revive this plant. Cutting jobs now has consequences. The company has six months to fix this,” Payne said.

Ontario Premier Doug Ford called the news “extremely tough” for the workers at the plant and their families, but vowed to do everything he can to support a strong future for the facility and its workers.

“GM has reaffirmed its commitment to the Oshawa plant, which will continue building Ontario-made trucks for years to come,” Ford said in a social media post.

“In the face of economic uncertainty caused by the chaos of President Trump’s tariffs and tariff threats, we will continue to fight every single day to attract new investment, secure good-paying jobs and support workers and their families.”

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