The union representing workers at General Motors' Oshawa plant is warning of a ripple effect with parts suppliers.
Unifor has claimed that as many as 1,700 workers in the auto parts industry may lose their jobs as a result of the Oshawa plant closure, set to take place at the end of this year. According to Automotive News Canada, the union is working to ensure these parts workers are taken care of.
General Motors, the top North American automaker, announced in November 2018 that it would close the Oshawa Assembly Plant as part of a global restructuring of its operations. The Detroit-based carmaker said the adjustments were necessary to address changes in consumers' automotive tastes, particularly a shift from smaller vehicles to SUVs and crossovers. GM did announce earlier this spring that the Oshawa plant would be transformed into a stamping and light-assembly operation, saving about 300 jobs.
Jerry Dias, national president of Unifor, wants to make sure those affected indirectly by the Oshawa closure are appropriately compensated.
"The workers deserve respect and support as operations are restructured or wound down," said Dias in a media release. "Unifor is determined to secure agreements that address important issues such as the transition to retirement opportunities, financial support, and adjustment support."
Automotive News Canada reports that the parts suppliers affected by the plant closure include CEVA Logistics, Securitas, Oakley, Robinson Solutions, Lear Whitby and others. Lear Whitby employees, members of Unifor Local 222, met over the weekend to discuss pension eligibility, severance and health care.
"In every one of these workplaces, severance is a key issue. Workers facing job loss need a financial bridge as they transition," said Local 222 President Colin James. "That is why we are demanding that all of these companies step up and provide enhanced severance for affected workers."
GM is ending production this year of the Chevrolet Impala and the Cadillac XTS, and complete final assembly of the Chevrolet Silverado and GMC Sierra at Oshawa, according to Automotive News. Work is expected to wind down there beginning in October.