President Trump has harsh remarks for GM over layoffs

27 November, 2018, 07:19 | Author: Kevin Carter
  • GM to slash 14,700 jobs in North America

Under Unifor's four-year contract signed in 2016, GM must give the union a year's notice before closing the plant.

He said instead, the province will immediately bolster unemployment insurance and retraining measures to help the almost 3,000 workers who will lose their jobs.

Before 1953, the facility produced McLaughlin Buicks and was one of six locations building Chevrolet before it merged with GM in 1918.

The plant in Lordstown, Ohio, that makes the Chevrolet Cruze compact auto is on the possible closure list.

GM in recent years has worked to slice costs, with a goal of $6.5 billion in cuts this year alone.

General Motors Co.'s (GM's) plan to cancel production at US factories and cut thousands of jobs drew a swift rebuke in the industrial heartland where US President Donald Trump posted surprising electoral wins premised on his pledge to restore manufacturing.

The reduction includes 8,100 white-collar workers, some of whom will take buyouts and others who will be laid off.

The Associated Press reports that more than 14,500 jobs will be lost in North America. Republican Senator Rob Portman told GM chief executive Mary Barra on Monday that the company should bring a new product to the plant and he also urged GM "to at least reallocate some of the production and employees to the Toledo GM plant".

"While the union does not have complete details of the overall announcement we have been informed that, as of now, there is no product allocated to the Oshawa Assembly Plant past December 2019", read the statement.

GM doesn't foresee an economic downturn and is making the cuts "to get in front of it while the company is strong and while the economy is strong," Barra told reporters.

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Democratic Sen. Sherrod Brown called GM's announcement move "corporate greed at its worst".

"Instead of using its massive tax savings to increase employee wages or invest in its workforce, GM is shuttering plants and cutting jobs to increase profits and further enrich shareholders".

The cost-cutting happened on Monday, when GM announced that it would eliminate about 14,000 jobs in North America and could close five manufacturing plants.

Those include a factory in Lordstown, Ohio, where GM makes the Cruze; the Detroit-Hamtramck plant in the company's hometown, where it makes the Volt and several large sedans; and a factory in Oshawa, Ontario, where such models as the Impala, the Cadillac XTS, the Chevy Silverado and the GMC Sierra pickup are made.

The company's main competitor, Ford, said earlier this month that it would reduce its salaried workforce by the second quarter of 2019.

This morning, dozens of workers were seen walking out of the Oshawa Assembly Plant, with some saying they were very unhappy with news of the planned closure.

But moving that auto, the Chevrolet Cruze, south of the border brings the risk of provoking a backlash from President Donald Trump.

Among the plants that could shut is the Detroit/Hamtramck assembly plant - which makes low-demand vehicles such as the Chevrolet Impala and the Buick LaCrosse. "Get a auto that is selling well and put it back in", Trump said.

"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.

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