General Motors Cuts Third Shift at Oshawa Assembly Plant, Resulting in Significant Job Losses
General Motors Co. has confirmed the elimination of the third shift at its assembly plant in Oshawa, Ontario, a move that will directly impact approximately 700 workers at the facility. According to Unifor, the labour union representing the employees, an additional 300 to 500 workers at parts suppliers that service the plant are also expected to lose their jobs as a consequence of this decision.
Broader Implications for the Canadian Automotive Sector
The Oshawa plant is responsible for manufacturing the Chevrolet Silverado pickup truck, one of GM's most popular and profitable models. This restructuring occurs against a backdrop of sustained pressure from the United States government, particularly during the Trump administration, which implemented tariffs aimed at incentivizing the relocation of manufacturing operations to the U.S.
GM had previously announced plans to cut the third shift last year, concurrently revealing it would add a shift at an Indiana-based plant also producing the Silverado. However, the company later committed to maintaining the Oshawa shift until early 2026, making this recent announcement a significant reversal of that commitment.
Union Response and Federal Policy Reactions
Unifor has been vocal in its criticism of GM's decision. The union recently released a video statement condemning both the automaker's actions and recent federal trade policies. "This union was not built by staying silent," stated Chris Waugh, Unifor Local 222 chair for the Oshawa plant. "It was built by standing up, pushing back and demanding respect." The video concludes with the slogan "If you sell here, build here," echoing past policies that linked import tariff rates to a manufacturer's domestic production footprint.
In a related development, the federal government responded to GM's scaling back of its Canadian manufacturing presence by reducing the number of U.S.-assembled vehicles the company can export to Canada on a duty-free basis. This policy shift occurred in October of last year.
Context of Broader Automotive Industry Challenges
This layoff announcement is not an isolated incident within Canada's auto sector. Last year, GM ceased production of its BrightDrop battery electric delivery van, citing weak market demand. That decision resulted in approximately 1,200 job losses at the CAMI assembly plant in Ingersoll, Ontario.
Furthermore, similar challenges are evident elsewhere. In Brampton, Ontario, Stellantis NV indefinitely paused a major renovation project at an assembly plant last year, creating uncertainty for about 3,000 plant workers and additional employees at dependent parts suppliers.
Financial Performance and Future Projections
GM's financial results provide additional context for these operational changes. The company reported earnings of US$2.7 billion for 2025, a figure that fell significantly short of its initial guidance range of US$7.7 billion to US$8.3 billion. Looking ahead, GM is projecting a substantial recovery, with net income forecasts for 2026 ranging between US$10.3 billion and US$11.7 billion.
A spokesperson for Unifor indicated that the total number of unionized workers affected by the Oshawa shift elimination could reach as high as 1,200, with the impact on non-unionized workers in the supply chain potentially being even more extensive. GM has not provided an official comment in response to recent media inquiries regarding this decision.
