GM, union reach deal to rescue part of Oshawa plant

GM, union reach deal to rescue part of Oshawa plant

The plant will serve as a stamping facility, producing parts for GM vehicles, with the company saying that they hope to eventually produce parts for other manufacturers as well.

"This transformation plan is very significant as it positions Oshawa for a sustainable future", GM Canada president and managing director Travis Hester said.

"By maintaining a footprint in Oshawa and keeping the plant intact, we save hundreds of jobs and this gives us the ability to build and create new jobs for the future", said Dias.

Hester said their current plan would see the plant handle 50 aftermarket component sets.

After announcing it would shut down its Oshawa plant by the end of this year, General Motors Canada and Unifor announced they have reached a "transformation agreement".

GM even hinted at the potential to grow and generate significant additional jobs in the coming years, as the business attracts new customers.

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"This announcement, though it might not have a lot of jobs as we sit here today in May, there's going to be a heck of a lot more in December". "There'll be more next year. I don't have any commitment from General Motors besides what we're talking about today", he said.

The resolution also includes increasing severance packages. Unfortunately most of the roughly 2,600 hourly workers now employed in Oshawa assembly will still lose their jobs, though there will be opportunities for them to move to other GM plants in Ontario.

Talking point: The announcement follows negotiations by labour union Unifor and intense public and political pressure to save the over 2,500 jobs poised to be lost. "Tell us what needs to be done", Dias said.

Accompanying Wednesday's announcement, GM did announce the creation of a jobs action centre to assist employees who may find themselves outside of retirement age or unable to transition to another company facility.

"Just yesterday, Oshawa's autoworkers were facing a completely uncertain future".

Todd Smith, Minister of Economic Development, welcomed the agreement.

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