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General Motors says it will eliminate one of three shifts at its Oshawa Assembly Plant this fall, a move that will directly affect 700 workers and ripple through the local supply chain while indirectly impacting an estimated 1,500 more as its effects ripple through the local auto parts economy.
The announcement comes amid growing strain from new US tariffs on Canadian-built vehicles and auto parts, raising alarm across all levels of government and labour.
GM cites “forecasted demand” and “the evolving trade environment” as reasons for the cut. In a statement, the automaker said the Oshawa facility will return to a two-shift operation from three and pivot toward producing more vehicles for Canadian customers.
“These changes will help support a sustainable manufacturing footprint as GM reorients the Oshawa plant to build more trucks in Canada for Canadian customers,” the company said, adding it has invested $2.6 billion in Canada since 2020. “We are implementing a plan to keep building here for Canadians for another 100-plus years. The company will work with our partners to support employees through the transition.”
Unifor, Canada’s largest private-sector union, represents 3,000 workers at the Oshawa plant and blasted GM’s decision as “reckless and premature.” Lana Payne, Unifor’s national president, accused the automaker of caving to US pressure before Prime Minister Mark Carney and President Donald Trump have even begun talks on a new economic deal.
“We will not allow GM to barter Canadian jobs to gain Donald Trump’s favour,” Payne said in a statement. “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.”
GM needs to reverse this short-sighted move before more damage is done, Payne added.
The union is calling on the prime minister to meet directly with automakers and reaffirm Canada’s expectations for domestic investment and production.
Carney addressed the job losses in his first press conference since taking office. He said his government is committed to supporting affected workers, adding the revenue collected from retaliatory tariffs will be directed toward worker support programs.
The government is “fighting hard” in negotiations with the US to defend Canada’s auto industry and other key sectors, he added.
Carney said companies are expected to act in true partnership by maintaining employment and investment in Canada — and if they fail to do so, “there will be consequences.”
Dan Carter, mayor of Oshawa, told Canada’s National Observer he’s already in discussions with General Motors, Unifor and both provincial and federal officials to explore alternatives that could keep production lines running and support affected workers in transitioning to new employment.
While acknowledging the hardship, he expressed optimism that the recent federal and provincial elections — and a stable new government — could help unify Canada’s response to US-driven trade disruptions. He’s hopeful Carney’s upcoming trip to Washington will set the stage for a more coordinated national strategy.
“This is a moment for all levels of government to come together,” Carter said. “Canada must send a clear message to the US about the strategic importance of the Canadian auto industry.”
Ontario Premier Doug Ford said the news is “extremely tough” for Oshawa workers and their families, but he reaffirmed the province’s support for the workers and the plant.
Last month, GM also announced a temporary shutdown at its CAMI assembly plant in Ingersoll, Ontario, where hundreds of workers began being laid off due to slowing sales of BrightDrop electric vans. The plant — Canada’s first full-scale EV manufacturing facility — was expected to produce up to 50,000 vehicles annually, but is now set to pause operations until October and resume at reduced capacity.
Unifor says GM is required under their collective agreement to meet soon to review options for preventing or reducing job losses in Oshawa. The union is also seeking clarity on potential impacts to the St. Catharines Powertrain Plant, which supplies engines to Oshawa.
GM executives say Trump’s 2025 tariffs could cost the company between $5.5–6.9 billion. CEO Mary Barra said GM is looking at ways to comply with US domestic content rules, including shifting more production to American plants. But no clear commitment has been made to preserve Canadian jobs long term.
General Motors says its Canadian sales surged in early 2025, with Chevrolet, Buick, GMC and Cadillac delivering 74,005 vehicles in the first quarter — a 17.3 per cent increase over the same period last year. The company continues to lead the Canadian auto market, holding a 16.9 per cent share of total sales.
The Oshawa assembly plant remains GM’s only facility that builds both heavy-duty and light-duty Chevrolet Silverado pickups.
Abdul Matin Sarfraz / Canada’s National Observer / Local Journalism Initiative
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