Canada blinded by GM closure and workers protest | Top news

By Allison Martell and Allison Lampert

TORONTO / MONTREAL (Reuters) – Hundreds of workers have stepped down and Canadian Prime Minister Justin Trudeau has expressed his "deep disappointment" after Monday's announcement by General Motors Co. of the closure of his plant. from Oshawa, surprising governments and employees.

Canadian officials, informed of the plan Sunday, pledged to help those affected by the closure in December 2019 as part of a broader restructuring that will reduce the production of slow selling models and reduce GM's workforce in North America.

GM said the closure affected 2,973 assembly line jobs in the Ontario city, out of a Canadian workforce of 8,150 automaker.

"I spoke to the Executive Director, Mary Barra, to express my deep disappointment at the closure," Trudeau tweeted Monday. "We will do everything in our power to help families affected by this news get back on their feet."

The end of auto production in Oshawa is a blow to workers at Canada's manufacturing center and comes as the Liberal Trudeau government tries to counter the economic impact of low oil prices in Western Canada. Trudeau must be re-elected next October.

"The families of Oshawa need to hear that the Prime Minister has not already given up a century of automotive industry in our community," said Durham Conservative MP Erin O 'Toole, in the Legislative Assembly.

GM told the provincial government that nothing could be done to keep the plant, located about 60 km east of Toronto, opened, said Ontario Premier Doug Ford.

"The first thing I said is," What can we do? What do we have to do? Ford said, referring to a phone conversation Sunday with GM Canada President Travis Hester, "He said the ship had already left the dock."

The Canadian and Ontario governments joined the United States in helping GM provide billions of dollars in assistance after the automaker filed for bankruptcy protection during the 2009 global economic downturn.

"We will not leave without fighting," said Jerry Dias, National President of Unifor, at a press conference in Oshawa.

Unifor, a successor to the United Auto Workers group, which brings together Canadian auto workers, represents most of the country's auto workers and over 250,000 in other sectors.

The Canadian auto industry has struggled to attract new investment in recent years, and the most recent closure will spill over to the company's supply chain.

Canadian auto parts manufacturer Martinrea International Inc. will shut down a plant that supplies the Oshawa plant, said executive president Rob Wildeboer in an interview.

Mr Wildeboer said the announcement concerned only about 1% of Martinrea's revenue, whose shares fell by 6.8% on Monday. Shares of comparable companies Magna International and Linamar Corp have reduced premature losses to nil.

Ford Motor Co. does not plan to close a factory in Canada, said President Mark Buzzell to the press after meeting Trudeau on Monday.

The new trade agreement signed in September by the United States, Mexico and Canada leaves significant room for Canadian mills to increase their duty-free exports. USMCA, as it's called the new NAFTA, is expected to be officially signed this week.

But a former Canadian auto executive said it would be difficult for Canadian government officials to persuade GM to keep the plant open.

"The government has done everything in its power to keep them afloat.It is clear that the incentives do not allow themselves to keep a car factory," said the executive, said. expressing anonymity because of the sensitivity of the problem.

Unifor members left the Oshawa factory in protest, "before a meeting with GM about the announcement, said a union spokeswoman.

"I've moved my family twice for this business and they've done it to me – it's terrible," said a crying worker at the CBC television channel, at the exit of l & # 39; plant.

BMO Capital Markets estimated that closing would reduce Canadian gross domestic product from 0.1% to 0.2% over a full year.

(Report by Allison Martell in Toronto, Allison Lampert in Montreal and David Ljunggren in Ottawa, edited by Richard Chang and Matthew Lewis)

Copyright 2018 Thomson Reuters.