GM shifting jobs to Mexico — from Canada
NEW YORK (CNNMoney) — It’s not just U.S. workers that are angry about losing auto jobs to Mexico. A union in Canada is decrying a decision by General Motors to cut 600 jobs there and shift production to Mexico.
The plant in Ingersoll, Ontario, makes the Chevrolet Equinox and the GMC Terrain SUVs. While production of a new version of the better selling Equinox will stay in Canada, GM is shifting production of a new Terrain to a plant in San Luis Potosi. The move will cost the jobs of 625 of its 3,200 current employees. Unifor, the union that represents workers at the plant, is crying foul.
“This decision reeks of corporate greed. It is not based on sales, it is an another example of how good jobs are being shifted out of Canada for cheaper labor in Mexico and Unifor will not let it happen without a fight,” said Unifor National President Jerry Dias. “There is no justification for layoffs at the CAMI facility.”
“The CAMI announcement is a shining example of everything wrong with NAFTA,” he added. “It must be re-negotiated.”
The company says the decision to shift production of the Terrain was made years ago, but was publicly announced at the beginning of the year.
“We continue to work with our Unifor partners to manage through the adjustment,” said GM spokesman Tom Wickham.
GM has been under pressure from President Trump about its Mexican plants.
“General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border,” Trump tweeted. “Make in U.S.A. or pay big border tax!”
GM soon announced it would invest $1 billion in its U.S. plants, which would allow it to add or keep 7,000 jobs. It also said it would hire about 450 U.S. workers to build axles that are currently built by a Mexican supplier. Those moves won praise from Trump.
But GM is not shutting down any of its plants in Mexico, where it employs more than 15,000 workers.
On Tuesday Trump met with GM CEO Mary Barra, along with the heads of Ford and Fiat Chrysler to talk about bringing jobs back from Mexico.