General Motors Canada says it will invest $170 million in its Oshawa, Ont., plant to transition the facility from manufacturing vehicles to stamping, sub-assembly and autonomous vehicle testing.
GM Canada president Travis Hester says the move will save 300 of the approximately 2,600 union jobs at the plant.
He made the announcement this morning in Toronto alongside Unifor national president Jerry Dias at a news conference.
GM announced last November it would cease production at the plant by the end of 2019, affecting about 2,600 workers.
In March, Unifor suspended a media campaign against GM amid what the union called productive talks with the automaker on the future of the plant.
The union said the company had been clear it wouldn’t extend vehicle manufacturing in Oshawa beyond the end of the year, but acknowledged there is potential to transform operations to maintain some jobs.
Todd Smith, Ontario’s minister of economic development, job creation and trade, said in a statement on Wednesday that the announcement is good news for Oshawa and the Durham Region.
“We are glad this historic site will continue to be a hub for vehicle parts manufacturing, technological innovation and regional economic growth,” Smith said.
“While this agreement is a positive development, many workers still face an uncertain future as the plant scales down. Our government is there for those workers and their families,” he added.
Smith said the province’s rapid re-employment training service will provide support to workers who are going to lose their jobs.
This story originally appeared on CBC