General Motors Co is carrying out plans to close down all its operations at a plant located near Toronto, Canada. The company is expected to come up with an announcement on Monday. This is as per a report put out by a local news channel on Sunday. The CTV news went on to report that the closure of the plant in Oshawa was expected to affect thousands of highly paid jobs. On one assembly line, General Motors builds sedans, while on another, they build their pickup trucks. The report further went on to add that the close of this plant is a part of a worldwide restructuring.
Unifor is the union, which is representing the autoworkers. They said that they have been told, there is no car production assigned to the factory beyond 2019. Hence this has raised the possibility of talks to protect the jobs. Unifor in a detailed manner said through a written statement that there is no real product allocated to the Oshawa assembly plant beyond December 2019. The union said that they do not accept this announcement and is calling on General Motors not to breach the contract agreement, which was reached back in the year 2016. If the plant indeed closes down, then that would mark the end of carmaking in Oshawa, which has been going on for more than a century. Oshawa is a city that lies 60 km to the east of Toronto. General Motors began to operate this huge plant back in the year 1953.
The talks that had taken place between the automaker and labour Union Unifor in the year 2016, were mainly related to the factory’s survival. As far as the settlement was concerned, General Motors had agreed on spending around $302 million in the operations of Oshawa. The union had praised the agreement as it was looked at as an effort to put an end to the loss of jobs to Mexico. Unifor confirmed of having received a notice on Sunday from the company regarding the major announcement, which they will make the day after. The union said that they do not have complete details and hence they would talk to the company representatives on Monday.