General Motors has announced it will eliminate one of three shifts at its Oshawa Assembly plant this fall, resulting in the layoff of approximately 750 workers. The decision, which the automaker attributes to evolving trade conditions and lower forecasted demand, has triggered alarm among union leaders and ripples of concern throughout Canada’s auto industry.
Tariffs Trigger Major Shift
The job cuts come just weeks after former U.S. President Donald Trump reintroduced a 25 per cent tariff on imported vehicles, including those made in Canada. This development has pressured North American automakers to reconsider their cross-border production strategies.
GM spokesperson Jennifer Wright confirmed the Oshawa plant will return to a two-shift operation later this year. “These changes are necessary to ensure a sustainable manufacturing footprint in Canada,” Wright stated, noting that GM is reorienting the facility to serve Canadian markets with increased truck production.
The Oshawa facility, which builds Chevrolet Silverado pickups for North American markets, currently employs around 3,000 people. It’s one of several GM plants across the continent that produce the Silverado, including facilities in the U.S. and Mexico.
Union Outrage: ‘Canadian Jobs Bartered’
Lana Payne, National President of Unifor—the union representing the affected workers—slammed the move as short-sighted and politically driven. “We will not allow GM to barter Canadian jobs to gain Donald Trump’s favour,” Payne declared in a strongly worded statement Friday.
Calling the decision “reckless,” Payne warned of a domino effect across the region’s auto parts supply network. “This doesn’t just impact 750 families directly. We’re talking about up to 1,500 additional jobs in the supply chain being at risk,” she said.
Payne also criticized the timing of GM’s decision, noting it was made ahead of ongoing economic talks between Canada and the United States. “GM jumped the gun. This is a premature announcement that undermines efforts for a fair trade resolution,” she told CBC Toronto.
Ottawa Responds: Carney Vows Consequences
In his first major press conference since assuming office, Prime Minister Mark Carney expressed sympathy for the affected workers. “Our deepest condolences go to the families facing uncertainty today,” he said. “The government is fighting hard for the future of Canada’s auto sector and will ensure companies act in partnership when it comes to investment and job preservation.”
Carney also issued a warning to corporations considering similar moves. “If not, there will be consequences for those companies,” he stated firmly, without elaborating.
Next Steps and Uncertain Futures
GM is legally required to provide six months’ notice of mass layoffs. Unifor confirmed that the notice has now been issued, with the shift change expected to be fully implemented by November 2025.
In the meantime, Payne said the union will use every available tool to reverse the decision. “We’ve got six months, and we’re going to fight every day of it,” she said.
The Oshawa layoffs represent one of the first major job casualties in Canada linked directly to the renewed U.S. tariff regime. Industry experts warn more disruptions could follow if trade tensions escalate.
