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GM to close Oshawa plant, leaving 2,800 people out of work: Report


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https://nationalpost.com/news/canada/gm-to-close-oshawa-plant-report

 

GM to close Oshawa plant, leaving 2,800 people out of work: Report

November 25, 2018 8:41 PM EST

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General Motors will announce Monday it is shutting down all operations in Oshawa, CTV News reported Sunday, throwing at least 2,800 people out of work and ending ties with the city near Toronto that stretch back over 100
years.

CTV cited “numerous sources” for its report, which the National Post could not immediately confirm. The news was greeted on social media Sunday night with shock and disbelief.

The huge ― and modern ― plant has 2,500 unionized employees and 300 non-union workers.

“My entire family has worked at General Motors,” outgoing Oshawa Mayor John Henry told CTV. “My dad was a foreman in the plant. I have two brothers in the plant. My sister worked there in university. I worked there as a contractor.”

 

 

 

TRENDING IN CANADA

 
 

 

Amid anxious calls on Twitter for Prime Minister Justin Trudeau and Ontario Premier Doug Ford to do something save the plant, two local Tory MPs vowed to investigate.

“Extremely concerned about reports regarding potential closure of GM Canada Oshawa operations,” Durham MP Erin O’Toole tweeted Sunday night. He said he and neighbouring Oshawa MP Colin Carrie were “reaching out for information.”

“I have seen the same reports as many in my riding, which claim GM may be closing their operations in Oshawa, and I find these reports gravely concerning,” Oshawa NDP MPP Jennifer French told Global News, which said it could confirm the CTV report.

“If GM Canada is indeed turning its back on 100 years of industry and community ― abandoning workers and families in Oshawa ― then this is a callous decision that must be fought,” she told the network. “Words cannot fully describe the anxiety that my community is feeling at this moment.”

The current plant opened in 1953 and produces Chevrolet Equinox, Cadillac XTS, Buick Regal and Chevrolet Impala, according to the GM Canada website.

Workers ― and others in the city ― held their breath just a few years ago when it appeared the plant might close. 

 
 

When the federal and provincial governments bailed out the auto industry in 2009 at a time when bankruptcy appeared imminent, the deal required the Big Three to keep 16 per cent of its North American production in Canada ― a requirement that ended in 2016.

And just three years ago, Oshawa took a hit when GM moved production of the Chevrolet Camaro to Michigan, slicing 1,000 jobs in Ontario.

While still the economic powerhouse of the city of about 160,000 people 60 kilometres east of Toronto, the GM operations in Oshawa are only a small remnant of the 40,000-worker monolith that once dominated the area’s
economy.

But carmaking in Oshawa stretches back to 1909, when the McLaughlin carriage company began making Buick cars, eventually combining with Chevrolet when General Motors was formed.

 
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Boy oh boy did GM and the rest make a fortune off of us tax payers.

 

Who can we thank for this again?

 

https://www.theglobeandmail.com/report-on-business/canadian-taxpayers-lose-35-billion-on-2009-bailout-of-auto-firms/article23828543/

 

Canadian taxpayers will fall about $3.5-billion short of breaking even on the money the federal and Ontario governments invested in the bailouts of Chrysler Group LLC and General Motors Co. in 2009.

The federal government's sale of the remaining 73.389 million common shares it held in GM will close the book on the investment and the auto maker's period of being derided as "Government Motors."

Ottawa will raise about $3.2-billion from the sale, based on a report from Bloomberg Tuesday that the stake it sold to Goldman Sachs & Co. was priced at $35.90 (U.S.) a share.

A report on the auto rescue done by the Auditor-General last year said the two governments had received $5.4-billion (Canadian) of the $13.7-billion they contributed to the bailouts of the two auto giants.

Since then, GM bought back about $400-million (U.S.) in preferred shares and the Ontario government sold its remaining shares for $1.1-billion (Canadian), before the final sale by the federal government this week. That brings the total proceeds to the governments to around $10.2-billion.

 

The share sale by Ottawa will help federal Finance Minister Joe Oliver balance the federal budget.

But Jerry Dias, president of Unifor, which represents workers at GM plants in Oshawa, Ont., St. Catharines, Ont., and Ingersoll, Ont., said the government should have kept its shares and used the ownership as leverage to force GM to re-invest in Oshawa and St. Catharines.

"It is remarkably short-sighted of the federal government to sell off its shares in GM at a time when there has been widespread agreement that securing GM's future in Canada is critical," Mr. Dias said in a statement.

Unifor has been meeting with GM officials both in Detroit and the Canadian head office in Oshawa to lobby for new investment in St. Catharines and Oshawa. General Motors of Canada Ltd. announced earlier this year that the auto maker and suppliers will invest about $540-million at the plant in Ingersoll to make the next generation of the Chevrolet Equinox crossover utility vehicle.

"The federal government is selling off its shares for short-term political gain, as it prepares its last budget before the next federal election. We need leaders with more vision, strategy and savvy than this," Mr. Dias said. "At some point very soon, the federal and provincial governments are going to have to take decisive action to secure the future of GM."

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https://www.huffingtonpost.ca/news/gm-bailout/

 

The more you read about it the more you realize that Harper's bailout was literally about buying votes in the short term and nothing more

 

A series of links detailing how absolutely screwed we taxpayers got on this.  There is no way Scheer is ever going to spin this as a fault of the new government.  As speaker of the house he signed off on the loan.

 

https://www.huffingtonpost.ca/2014/06/30/gm-dealers-lawsuit-canada_n_5544370.html?utm_hp_ref=ca-gm-bailout

 

https://www.huffingtonpost.ca/2015/04/09/canadas-sale-of-gm-stock_n_7032848.html?utm_hp_ref=ca-gm-bailout

 

I know how fast people will be to run in here screaming it's the unions fault.  But the truth is, these firms have been pushing operations overseas since the inception of NAFTA.  Oshawa is about to become an absolute ghost town and watching O'Toole try to place blame on everyone but his own party will be sad to see

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Mexico will likely get most of the jobs that this opens up with the US getting a share as well.

 

Oshawa needs to attract another carmaker to take residence in the plant.  They're going to have to bend over though now along with the Ontario provincial government and offer some serious tax incentives to whomever is willing to move in.

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4 minutes ago, Warhippy said:

I know how fast people will be to run in here screaming it's the unions fault.  But the truth is, these firms have been pushing operations overseas since the inception of NAFTA.  Oshawa is about to become an absolute ghost town and watching O'Toole try to place blame on everyone but his own party will be sad to see

The unions screwed up long ago and became near powerless as a result.  Unlike 30 years ago, they have no leverage these days to prevent these things from happening.  This is now all because of globalization and if the jobs move to the US and/or Mexico, it's all NAFTA.

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1 minute ago, SabreFan1 said:

Mexico will likely get most of the jobs that this opens up with the US getting a share as well.

 

Oshawa needs to attract another carmaker to take residence in the plant.  They're going to have to bend over though now along with the Ontario provincial government and offer some serious tax incentives to whomever is willing to move in.

I anticipate mexico will actually get the vast bulk of the jobs making "parts" which will then be assembled by machines back in the US.  Little jobs will be created north of the border yet it will be trumpeted as a massive success like the foxconn conjob that cost US taxpayers billions (almost $3 billion and counting) or the gift that the US taxpayers just gave Amazon.

 

Needless to say this will be handled poorly and a lot of people will be trying to rake in credit where it is not due, lay blame where it is not warranted and point their fingers at the wrong parties in order to not look stupid (erin o'toole) 

 

A loss for canada indeed.  Amazing that the plant used to employ over 20,000 yet we're not worried about less than 2500 jobs

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Just now, SabreFan1 said:

The unions screwed up long ago and became near powerless as a result.  Unlike 30 years ago, they have no leverage these days to prevent these things from happening.  This is now all because of globalization and if the jobs move to the US and/or Mexico, it's all NAFTA.

It won't stop people though.

 

The price of oil right now has people screaming for the Canadian government to help.  Alberta is demanding help from the Alberta and federal governments. 

 

Hindsight being what it is, the irony of the hated NEP being the one thing that would have saved canada now from much of this being shouted down and derided by the group now asking for the government to help and enact a national energy plan, voiced by the same people that wanted NAFTA instead which caused so many of the issues we see in energy and manufacturing is not lost on people

 

I hope.  

 

You're right.  Much like so much, this country gave away in the 80s and early 90s  this could have been prevented but was instead exacerbated long ago.  The harper bailout did nothing but cost us billions, and still get the joy of watching these people thrown out of work.

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1 minute ago, Warhippy said:

I anticipate mexico will actually get the vast bulk of the jobs making "parts" which will then be assembled by machines back in the US.  Little jobs will be created north of the border yet it will be trumpeted as a massive success like the foxconn conjob that cost US taxpayers billions (almost $3 billion and counting) or the gift that the US taxpayers just gave Amazon.

 

Needless to say this will be handled poorly and a lot of people will be trying to rake in credit where it is not due, lay blame where it is not warranted and point their fingers at the wrong parties in order to not look stupid (erin o'toole) 

 

A loss for canada indeed.  Amazing that the plant used to employ over 20,000 yet we're not worried about less than 2500 jobs

It was double that at it's zenith:

 

1 hour ago, prix57 said:

the GM operations in Oshawa are only a small remnant of the 40,000-worker monolith that once dominated the area’s economy. 

 

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4 minutes ago, SabreFan1 said:

It was double that at it's zenith:

 

 

If I was reading it right, that was spread over multiple plants but this group being one of the 20,000 that this specific plant employed at its peak.

 

According to GM's website, the Oshawa Assembly Plant employs 2,522 workers with Unifor Local 222. Production began on Nov. 7, 1953. In the 1980s, the plant employed roughly 23,000 people.

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2 minutes ago, Warhippy said:

If I was reading it right, that was spread over multiple plants but this group being one of the 20,000 that this specific plant employed at its peak.

It was unclear.  It said, "40,000-worker monolith".  Not sure if that involved multiple buildings around the city or not.  I've never had a reason to go there before.

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6 minutes ago, Warhippy said:

The utter gall of this clown is irritating.  SERIOUSLY!

 

 

Stand up for those affected?  By doing what?  Paying it lip service for a while and then voting against any measures to help the newly out of work because conservatives don't believe in "charity"?

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1 minute ago, SabreFan1 said:

Stand up for those affected?  By doing what?  Paying it lip service for a while and then voting against any measures to help the newly out of work because conservatives don't believe in "charity"?

Sitting and waiting to see the responses from the group that cost us taxpayers billions saving GM then shortchanging us by selling the remaining shares to make a budget appear balanced pre election.  Shares that could have been leveraged now to save these jobs.

 

Conservatives believe in capitalism and that businesses are free to do what they want, invest how they want, commit to the practices they want

 

The reformacons in canada though believe in corporate welfare finger pointing and will now scream cry and wail that these jobs are leaving vote rich conservative territory and will beg for government intervention while simultaneously assigning blame to the government and using NAFTA and Premieres Wynne and McGuinty as the excuse.

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1 minute ago, Warhippy said:

Sitting and waiting to see the responses from the group that cost us taxpayers billions saving GM then shortchanging us by selling the remaining shares to make a budget appear balanced pre election.  Shares that could have been leveraged now to save these jobs.

 

Conservatives believe in capitalism and that businesses are free to do what they want, invest how they want, commit to the practices they want

 

The reformacons in canada though believe in corporate welfare finger pointing and will now scream cry and wail that these jobs are leaving vote rich conservative territory and will beg for government intervention while simultaneously assigning blame to the government and using NAFTA and Premieres Wynne and McGuinty as the excuse.

I understand what happened.  You've posted about this before.  I'm talking about his tweet.  He's paying it lip service and he knows it.  Any attempt to spend money to get people back to work will get voted down.  Conservatives aren't a fan of spending money to help the newly, or soon to be, poor.

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1 minute ago, SabreFan1 said:

I understand what happened.  You've posted about this before.  I'm talking about his tweet.  He's paying it lip service and he knows it.  Any attempt to spend money to get people back to work will get voted down.  Conservatives aren't a fan of spending money to help the newly, or soon to be, poor.

Actually, and please bare with me

 

Conservatives DO in fact spend money on the poor, the needy and the disenfranchised.  True Conservatives care about helping their neighbours.  What we have is not a true Conservative though.  We have the Reform/Conervatives in canada.  The former reform party which assumed leadership was full of farther than right right wingers in the 90's through early 2000's and after the Cons were dealt another defeat by the Chretien/Martin party they joined forces.

 

keeping the small smattering of true fiscal conservatives on the bottom while social conservatives effectively took the lead of the party and have never let go.

 

Back in the day Conservatives watched businesses that couldn't adapt or evolve die without blinking.  Now they throw money at them and watch the people suffer.

 

I grew up in a truly Conservative minded household.  My parents gave up on the party post merger and I didn't even survive one election before i gave up my card.

 

The groups in the Us and canada masquerading as Conservative brands have destroyed peoples views on what real Conservatives are.  effective centrists.  Social liberals yet fiscal conservatives.  

 

My man, we as a breed died out almost 20 years ago.

 

Watching this current situation infuriates me as myself and others were screaming to let GM walk and if not to retain the shares as leverage to ensure they stayed in canada.  Neither happened.  Now we're about to watch over 2000 good hard working canadians thrown out of decent jobs to save a few dollars on benefits packages and assembly.  While the party at fault and the one in charge do squat except either offer to throw money at GM to save what still remains or to place blame.

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2 minutes ago, Warhippy said:

Actually, and please bare with me

 

Conservatives DO in fact spend money on the poor, the needy and the disenfranchised.  True Conservatives care about helping their neighbours.  What we have is not a true Conservative though.  We have the Reform/Conervatives in canada.  The former reform party which assumed leadership was full of farther than right right wingers in the 90's through early 2000's and after the Cons were dealt another defeat by the Chretien/Martin party they joined forces.

 

keeping the small smattering of true fiscal conservatives on the bottom while social conservatives effectively took the lead of the party and have never let go.

 

Back in the day Conservatives watched businesses that couldn't adapt or evolve die without blinking.  Now they throw money at them and watch the people suffer.

 

I grew up in a truly Conservative minded household.  My parents gave up on the party post merger and I didn't even survive one election before i gave up my card.

 

The groups in the Us and canada masquerading as Conservative brands have destroyed peoples views on what real Conservatives are.  effective centrists.  Social liberals yet fiscal conservatives.  

 

My man, we as a breed died out almost 20 years ago.

 

Watching this current situation infuriates me as myself and others were screaming to let GM walk and if not to retain the shares as leverage to ensure they stayed in canada.  Neither happened.  Now we're about to watch over 2000 good hard working canadians thrown out of decent jobs to save a few dollars on benefits packages and assembly.  While the party at fault and the one in charge do squat except either offer to throw money at GM to save what still remains or to place blame.

 

I get what you're saying.  That's why I laugh and shake my head at all of the modern day conservatives who worship Ronald Reagan.  They would have hated him had he been president nowadays. 

 

Their current opinion of him is based on his attempt at trickle down economics.  He actually thought it was a viable theory in that the richest people who ran corporations would spend more and create more jobs for citizens.  His intent was not for them to stash the cash away in a game of how high can you get to on the Forbes 400.

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