Study verifies economic shock of potential General Motors Oshawa closure

TORONTO, Jan. 9, 2019 /CNW/ - A new independent study verifies a closure of the General Motors (GM) Oshawa Assembly Plant would create an economic shock, resulting in 24,000 lost jobs and a loss of $1 billion per year in government revenue.

"We're looking at tens of thousands of jobs and a direct hit to the GDP," said Unifor National President Jerry Dias. "Should GM proceed with plans to close Oshawa, the economic impact would be substantial, both in the short and long term."

Unifor commissioned the independent study, conducted by Robin Somerville, Director of the Centre for Spatial Economics and President of Quantitative Economic Decisions Inc., to examine the economic impact of a potential closure of GM's Oshawa operations at the end of 2019.

The study shows there would be an immediate fallout in 2020, with Ontario's GDP expected to fall by $5 billion and a decline in Ontario government revenues of $330 million. In the long-term, Ontario's economy would shrink by an average of $4 billion each year to 2030, leading to a reduction in Ontario government revenues of nearly a half billion and federal government revenues of just over half a billion a year.

The study also projects job losses will mount over time to reach 14,000 in Ontario and a further 10,000 elsewhere across Canada by 2025.

"There would be a major ripple effect that would be felt far beyond Oshawa and even Ontario," said Dias. "We're asking Canadians and governments at all levels to make it clear to GM that we will hold them accountable should they decide to inflict this damage by closing a top-quality and productive plant for no other reason than corporate greed."

To read the full report and for further background visit SaveOshawaGM.ca.

The report comes days before GM's January 11, 2019 investor event where the company is expected to outline its future corporate direction, which includes expansion of production in Mexico. Timed to coincide with the investor event, hundreds of Ontario workers will rally in Windsor, Ontario directly across from GM's Detroit headquarters to call on the automaker to continue operating its Oshawa Assembly Plant and maintain production in Canada. Information on the rally is available here.

Unifor is Canada's largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.

SOURCE Unifor