OSHAWA, Ont. General Motors Canada is eliminating the third shift at its Oshawa Assembly plant, laying off approximately 500 direct employees as the automaker ramps up production at its Indiana facility amid ongoing U.S. tariffs.
The layoffs take effect on Friday. The plant will return to two shifts starting February 2, GM said in a statement Thursday.
Unifor, the union representing Oshawa workers, said up to 1,200 jobs across the supply chain will be lost when including workers employed by parts suppliers.
Workers walk into their final shift knowing they won't have a job next week
Jeff Gray, president of Unifor Local 222, said affected workers face a "heartbreaking" situation.
"You feel very nervous and anxious that you can continue to provide a living for yourself and your family," Gray said.
Seniority rules will determine who stays. High-seniority workers will be bumped to the two remaining shifts, while lower-seniority employees across all three shifts will lose their jobs.
GM said it worked with the union to provide "comprehensive separation packages, retirement support, and other benefits" for laid-off workers.
Union accuses GM of caving to Trump
GM first announced the shift cut in May 2025, a month after U.S. President Donald Trump imposed tariffs targeting the auto sector. The company cited "forecasted demand and the evolving trade environment" at the time.
Unifor National President Lana Payne accused GM of capitulating to U.S. trade pressure.
"General Motors has made a clear decision to cave to Donald Trump rather than stand up for its loyal Canadian workforce, making the workers in Oshawa pay for that appeasement with their jobs," Payne said.
While GM cuts jobs in Oshawa, it is adding 250 temporary workers to its Fort Wayne, Indiana, plant. Both facilities produce the Chevrolet Silverado pickup truck.
Unifor said it presented GM with a "viable plan" to retain the third shift until contract negotiations this fall. GM rejected the proposal.
Ford promises support, calls for scrapping EV mandate
Ontario Premier Doug Ford called the layoffs "very disappointing" and said the province has a plan to help affected workers.
"We are going to make sure they have opportunities in the defence sector, life sciences sector, other areas, and we will be there for them 24/7," Ford said Thursday.
Ford urged the federal government to support the broader auto sector and called for eliminating the electric vehicle mandate to improve competitiveness.
The layoffs coincide with Prime Minister Mark Carney's meeting with provincial premiers in Ottawa, ahead of a mandatory review of the Canada-U.S.-Mexico Agreement later this year.
Local politicians demand action
Ontario NDP Leader Marit Stiles called for an "action plan to deliver certainty for Oshawa workers."
"How many more workers need to lose their livelihoods before we have a serious auto strategy?" Stiles said in a joint statement with Oshawa MPP Jennifer French.
French said GM takes Oshawa for granted. "If they're planning to sell GM cars here, they need to build them here," she said.
Oshawa MP Rhonda Kirkland said she was "heartbroken" and vowed to continue working toward a trade deal that protects Canadian auto manufacturing jobs.
Mayor Dan Carter said the city would work with GM, Unifor, and governments to bring new manufacturing opportunities to Oshawa.
The layoffs mark the latest blow to Ontario's auto sector, following job losses at the GM CAMI Assembly Plant in Ingersoll and the Stellantis plant in Brampton.
