General Motors to closes a factory… 0
Don’t worry it won’t be the Ellesmere factory here in the UK. The factory in question is a car assembly plant based in Oshawa, Canada. The facility will close in 2013 taking more than 1,500 jobs with it. The news will be devastating to all involved.
Originally meant to close in 2005
General Motors informed the union of workers last week of the sad news. Originally the plant was supposed to close back in 2008. Talks in 2005 confirmed that original timeframe for the factory to become non-existent. However four extra years were squeezed out of it but now luck has finally ran out.
General Motors made the plans in order to restructure the company. The world’s largest car producer planned to make savings before the global financial crisis but a decision had to be carried out following the bankruptcy of the company in 2009.
What will happen to the Chevrolet Impala and the Equinox?
The factory produces the popular Chevrolet Impala, a mid-sized saloon vehicle along with the Chevrolet Equinox crossover. Production will now have to shift.
The production of the Chevrolet Impala is set to move to a nearby General Motors factory where the Chevrolet Camaro, Buick Regal and the Cadillac XTS cars are currently produced.
Will jobs be saved?
That could mean that certain jobs will be saved. If the plant adds another shift with the increase of work being given, meaning those leaving Oshawa may get their old jobs back down the road. General Motors have not yet confirmed as to whether they will indeed add a third shift at the plant. If the plans do go ahead then up to 500 jobs could be added.
The Chevrolet Equinox crossover vehicles could be transferred to General Motors’ Spring Hill Tenn plant. Previously this plant was closed after the production of the Chevrolet Saturn was killed off by General Motors, a decision made thanks to reconstruction plans. The plant is reopening thanks to an agreement found with the United Auto Workers that involves allowing the company to hire a number of employees on a minimal wage of just $14 per hour with minimal benefits. These wages are less than half of what is offered at the Oshawa plant. Many have complained about the conditions in which the new workers at the factory will have to bear.