GM to shift plant from Canada to Mexico, cutting 625 jobs

Automotive - Himanshu Gill - Jan 28,2017

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gm to shift plant from canada to mexico cutting 625 jobs

US-based automotive giant General Motors has revealed that it will cut 625 jobs at its Canadian assembly point in Ontario, by shifting its production to Mexico.

The plant in Ingersoll, Ontario, manufactures the Chevrolet Equinox and the GMC Terrain SUVs. Although the production of a newer version of the better selling Equinox will remain in Canada, GM will be shifting production of a new Terrain to a new plant in San Luis Potosi.

As a result of this move, 625 jobs out of 3,200 jobs will be lost in Canada. The workers union at the Ontario plant, named Unifor, is protesting against the move.

Unifor has blamed the North American Free Trade Agreement (NAFTA) and cheaper labor costs of Mexico for their job losses, which they have called ‘unjustified’ given the strong sales of the car that they make.

Jerry Dias, president of Unifor, has called this decision a ‘corporate greed’ and an example of how good jobs are being shifted out of Canada. He added that all this is primarily because of NAFTA and must be re-negotiated.

Meanwhile, GM has said that the decision was taken almost a year ago but has been publically announced this week. It also added that Unifor was informed about the potential labor impact much in advance.

GM is already under immense pressure from US President Donald Trump for its Mexico plants. Earlier this month, it had announced that the company would invest $1 billion in the US and create 7,000 jobs. It also said that it would hire another 450 US employees to make axles for its cars that are currently been manufactured in Mexico.

However, GM has decided against shutting down any of its production plants in Mexico, where it employs more than 15,000 full-time workers.