Aug 31, 2007

Auto union laments job losses at General Motors Oshawa, Ontario truck plant

Toronto, Ontario – General Motors’ plans to eliminate one shift of production, starting January 1, 2008, at the company’s truck plant in Oshawa, Ontario, will result in the loss of over 1,000 direct jobs at the plant, in addition to the 3,000 jobs that will be lost in the fall of 2008 when the car plant Number 2 in Oshawa closes, notes the Canadian Auto Workers (CAW) union.

In a statement, the CAW said, “In addition to the jobs lost at GM, several hundred other jobs will be immediately lost in the region, as companies which supply GM (with parts, seats, and components) also scale back employment. At least $100 million of annual family incomes in the region will be lost, as a result of this decision. This in turn will destroy more jobs in every business in the region that depends on the spending power of autoworkers, everything from restaurants to home builders.”

The CAW said it will attempt to negotiate buyout incentives with GM that would allow many of the 1,000 jobs to be offset through voluntary early retirement. “GM is not contractually obliged to provide these packages, since this is a volume-related decision,” the CAW says in its statement. “But we will press the company hard to provide these incentives.”

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