Friday, June 1st, GM declared it will probably close one of its two lines in Oshawa, Ontario plant by June 1st 2013.
The plant has 2,000 employees and was expected to be closed in 2008, but due to market demand the production was extended to produce the Chevrolet Impala and Chevrolet Equinox crossover.
“It is too early to predict accurately the job impacts related to these scheduling actions which will unfold over the next year as some employees may elect to retire and others will be on indefinite layoff,” said General Motors of Canada communications director Faye Roberts.
The company already announced its employees that from the fourth quarter of this year it will remove one of the current three shifts. In the first quarter of 2013 a second shift will stop and when the production of current generation Chevrolet Impala ends, the consolidated line will be removed too. CAW President Ken Lewenza considers GM’s decision short-sighted, adding that the company’s best plan would be to take advantage of the existing capacity to meet increasing demand for cars.
“The decision to close this very productive line and put 2,000 more workers out of a job is ill thought-out and could damage the company in the long run,” Lewenza said in a statement.