The Ford Motor Company in the U.S. delivered an unexpected blow to this region’s economy on Thursday.
The company announced it will be pushing back the production of electric vehicles at its Oakville plant by two years.
But, that means it could be as much as three years before the first EV comes off the line.
The sprawling Ford plant in Oakville is a critical element of this region’s economy with 3,200 workers, many of them living in Hamilton are now looking into how the announcement will impact their jobs.
Mark Sciberras the Unifor Local President says the workers are “going to have to go home to deal with it with their families and take it day by day,” as the news is very difficult for them.
READ MORE: Ford Motor Co. delays start of EV production at Oakville plant until 2027
The Ford Company is planning to transform the plant to fully electric vehicle production, which was supposed to be done by next year.
However, the company is now extending that transition for two more years until 2027.
Ford’s president Jim Farley in Michigan said, “the additional time will allow for the consumer market to further develop.”
“We value our Canadian teammates and appreciate that this delay will have an impact on this excellent team,” said Farley, leaving Ford’s Oakville workers wondering how they’re going to get through the next three years of shutdown without their regular jobs.
Lana Payne the Unifor President said the news is very brutal for their members right now.
Payne said the union worked out an agreement with Ford to support workers during a transition of less than a year however they now want to work on extending that for the entire shutdown.
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“For us right now the big task is making sure that A, our members are protected during this extended transition period and B, that we’re meeting with the company, to discuss how we lessen and mitigate this impact.”
The union local says, for one thing, the Ford workers need changes in employment insurance to support them during the shutdown.
Mark Sciberras, Unifor Local 707 President said the unemployment insurance offered doesn’t provide enough benefits for these members during these types of layoffs.
An analyst who studies the auto industry, says the transition to electric vehicles will be challenging.
“Is about managing the transition during a critical moment, a generational moment, an epochal moment in an industry that has been absolutely critical for the economy in Hamilton, Southern Ontario and Canada broadly,” said Brendan Sweeney from the Trillium Network for Advanced Manufacturing.
“It’s not quite devastating. They’re not closing the plant. But this is a long time for the folks who work there.”