Jan 30, 2017 08:01 PM EST

General Motors’ Canadian Employees Losing Jobs As Car Maker Chooses Cheaper Option

General Motors Corp. has decided to move some of its jobs in Canada to Mexico. Unions claim that the car maker has made the decision because it aims to take advantage of the cheaper labor in Mexico.

As reported by New Kerala, 625 General Motors workers in Ontario will have to find a new job following the car maker's decision to let them go. The decision is closely related to General Motors' move to stop the production of its Chevrolet Equinox sport-utility vehicle.

To replace its Chevrolet Equinox sport-utility vehicle, General Motors is planning to produce a new SUV model. The new product will be manufactured in Mexico, so the 625 workers who previously worked on the Chevrolet Equinox sport-utility vehicle will be laid off.

WKBN reported that the affected workers will lose their job in July. Unions are helping the workers fight the decision. However, GM Canada said its management already notified its three Ontario plants that workers will be laid off as part of the operational changes that it will implement.

Unifor National President Jerry Dias criticized General Motors' decision, saying that there is no basis for the layoffs and the cessation of production of the Equinox because the sale of the model has been going strong. Dias claims that General Motors' decision was mainly fueled by its desire to take advantage of the cheap labor in Mexico.

The decision of the car maker also has some Canadian unions ranting against the North American Free Trade Agreement and its impact on the workers of the country. There are those who are calling for the renegotiation of the trade agreement, while others believe that it is doing good as it is.

Some industry leaders are also worried that United States President Donald Trump's stance regarding trade would further hurt the automotive industry in Canada. However, there are also some who are optimistic that Trump could help boost the industry.

Jobs & Hire previously reported that General Motors promised to invest $1 billion in the United States after Trump criticized car makers that announced their expansion plans outside of the country.

Get the Most Popular Jobs&Hire Stories in a Weekly Newsletter
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics