GM laying off 625 workers
General Motors is cutting 625 jobs at its assembly plant near London, Ont., a move that union officials say demonstrates why NAFTA has been a bad deal for the Canadian automotive industry as jobs have migrated to lower-cost jurisdictions such as Mexico.
“The CAMI announcement is a shining example of everything wrong with NAFTA, it must be re-negotiated,” Unifor president Jerry Dias said in a statement Friday. “It is imperative that we have trade rules that help ensure good jobs in Canada.”
The layoffs will take effect in July at the CAMI Assembly plant in Ingersoll, Ont., which employs 2,800 Unifor workers.
GM Canada said it gave Unifor advance notification of how product changeovers would affect workers at three Ontario plants, adding it will continue to work with the union to help manage the adjustment.
The Ingersoll plant builds the Chevrolet Equinox and the GMC Terrain. The company recently announced it was shifting production of the GMC Terrain to Mexico.
A GM Canada spokeswoman said the cuts Friday related to the changeover of production from older model Equinoxes to the next-generation Equinox.
U.S. President Donald Trump has been outspoken about his plans to revise NAFTA, calling it the worst trade deal the U.S. has ever signed.
Trump’s protectionist, Americafirst comments have caused concerns about whether Canada’s automotive industry could take a hit, particularly if a border tax is implemented on Canadian goods.
There are 141,000 people employed in Canada’s automotive sector, either in vehicle assembly or parts manufacturing, according to the Conference Board of Canada.
That’s roughly 60,000 fewer people than were employed in the sector a decade ago, as some roles have been automated and others have been moved to Mexico, where labour costs are cheaper.
Meanwhile, the surplus that Canada once enjoyed on its automotive trade with the rest of the world has slipped into a widening deficit.
Before 2006, Canada’s auto sector had an annual trade surplus of around $10 billion. In the fourth quarter of 2016, the sector had a net deficit of $25.6 billion, according to the Conference Board.
Brad Duguid, Ontario’s economic development minister, says there are both risks and opportunities on the table for Ontario with regards to a renegotiation of NAFTA.
“I think the jury’s out in terms of what will or will not be accomplished by that,” Duguid said.
“But the fact is, we know the reality, and that’s that President Trump is planning to reopen these discussions and I think our prime minister is wise to be proactive in coming to the table and identifying what our potential interests may be.”