The General Motors assembly plant in Oshawa, Ont., shuttered this week, ending an era for the motor city. Experts say the closure of the plant, which led to layoffs affecting thousands of workers, signifies more than just that.
Craig Alexander, chief economist at Deloitte Canada, told Global News the Canadian labour market is “doing well,” but technical changes are affecting workers.
“A lot of workers are being affected by technical changes that are disrupting business models as a result.”
Tweet This
“We have a lot of workers that are ultimately going to need to be retrained, develop new skills, so that they can move into the industries that are experiencing the strongest job growth in the future,” he added.
GM announced in November last year that it would wind down production at the plant, which has been in operation since 1953, while the company first started producing vehicles in the city east of Toronto in 1918. The closure means about 2,600 unionized employees will lose their jobs, though about 300 are being saved through a $170-million investment by GM to turn part of the operation into a parts plant.
Alexander said having workers who are losing jobs and need to retrain can be “detrimental” to the Canadian economy.
“We’ve actually seen globally in things like Brexit and the rise of Trump … that when people get left behind, they become frustrated that the system, the establishment isn’t working for them, they want political change — and sometimes those changes are not healthy,” he said.
While technological changes in the economy have always been present, increasing global competition for business makes it more difficult for workers to keep up, the economist noted.
“I think what we’re seeing is fundamental change in the structure of the Canadian economy,” Alexander said. “When we look at industries driving growth, it isn’t the industries that drove growth in the past.”
GM prepares to shutter Oshawa plant after more than 100 years in the ‘Motor City’
Greig Mordue, an associate engineering professor at McMaster University, highlighted the change that’s occurred specifically with the Oshawa GM plant.
“At one point in time, Oshawa made a million cars a year. It was responsible for about a third of the automotive production at its peak year,” he said. “Oshawa has had a long, slow, difficult come-down from those peak years.”
Mordue noted Canada’s auto industry doesn’t necessarily have to get left behind.
Story continues below advertisement
“You can build electric vehicles, once you decide how you want to build them, in any location,” he said, noting the same is possible for autonomous vehicles.
However, Mordue acknowledged that laid-off workers will have difficulty adjusting to the change, retraining and finding jobs.
Roy Eagen is one of those parts workers. Walking out of the plant on Wednesday, his eyes welled with tears, both from the biting cold wind and the emotions of the day.
“It was rough, it was pretty depressing,” he said of watching the last truck frame go down the line.
GM has been working to help employees find other jobs, while about 1,200 of the employees qualify for full retirement packages.
GM Canada VP looks ahead to future of company in Oshawa
“The employee base that we’ve had over the years has accomplished so much, and we owe it to them to help them transition as best we can,” said David Paterson, vice-president of corporate affairs at GM Canada.
He said it was a sad day, but with Oshawa only operating at about a third of capacity and no vehicles ready to assign to it, the company felt it had to wind down production.
Along with the parts conversion, GM is also building a track at the Oshawa facility to test electric and autonomous vehicles as part of a major transition in the auto industry.
The auto giant said this month that several employers have identified about 2,000 jobs that will become open in Durham Region in 2019 and 2020 — many of them related to the refurbishment of the Darlington nuclear power plant southeast of Oshawa.
The company has also identified 300 openings for auto technicians at GM dealerships in Ontario and 100 jobs that will be open at other GM facilities in Ontario.
Paterson said the company would ensure its employees get retraining. Durham College is expected to establish a confidential internet portal in the new year to help auto workers identify job openings and begin plans to take retraining courses offered by a consortium of colleges.
HALIFAX – An energy firm based in Ireland says it is planning to produce aviation fuel using about 700,000 tonnes of wood biomass annually.
Simply Blue Group announced today that construction would begin in 2026 with the bio fuel project expected to be operating by 2029 in Goldboro, N.S., about 165 kilometres northeast of Halifax.
The company says it has secured about 305 hectares of land for development, including 108 hectares previously owned by Pieridae — which had planned to build an LNG plant at the site — and 198 hectares owned by the Municipality of the District of Guysborough.
Based in Cork, Ireland, the company says its aviation fuel performs like conventional jet fuel but reduces greenhouse gases by “approximately 90 per cent.”
Simply Blue says that every year the project will source about 700,000 tonnes of biomass from Wagner Forest NS Ltd. to produce 150,000 tonnes of the fuel.
Tory Rushton, the province’s natural resources minister, issued a statement saying the plant could represent a new market for the province’s forestry sector.
This report by The Canadian Press was first published Sept. 13, 2024.
FREDERICTON – New Brunswick RCMP are disputing claims that the recent shooting death of an Indigenous man in mental distress happened during a police wellness check.
Assistant commissioner DeAnna Hill, commander of the New Brunswick RCMP, says that information is inaccurate.
On Monday, the RCMP said two officers responded to a report of an armed man in mental distress at a home in the Elsipogtog First Nation, where one Mountie shot the man after the other failed to subdue him with a stun gun.
Erin Nauss, director of the Serious Incident Response Team, says she understands the initial interaction on Sunday was not what the RCMP would call a wellness check, but she says the police oversight agency will conduct an investigation to “determine all of the facts.”
Meanwhile, a statement from an Indigenous group that works with the RCMP said they weren’t told about the deadly incident until it was too late, and the group described the Mounties’ initial role at the scene as a wellness check.
As well, New Brunswick Liberal Leader Susan Holt has described what happened as a wellness check gone wrong.
This report by The Canadian Press was first published Sept. 13, 2024.
HALIFAX – RCMP are expected to provide an update today on their investigation into the suspicious disappearance of a 55-year-old Nova Scotia woman.
Esther Jones was reported missing on Labour Day, and the RCMP’s major crime unit is now involved in the case.
According to police, Jones was last seen on Aug. 31 in Kingston, N.S., and family members reported her missing Sept. 2.
Two days later, officers found Jones’s vehicle, a silver 2009 Volkswagen Passat, abandoned in nearby Greenwood, N.S.
Jones is described as five-feet-four with a slim build, and she has brown, greying, shoulder-length hair and hazel eyes.
She may have been wearing a black T-shirt with ties on the shoulders, a black and floral below-the-knee skirt, and sunglasses with mirrored lenses when she was last seen.
This report by The Canadian Press was first published Sept. 13, 2024.
