Oshawa, Ontario

Economy

Oshawa is headquarters to General Motors of Canada, which has large-scale manufacturing and administrative operations in the city and employs thousands both directly and indirectly.

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Large divisions of the Ontario Ministry of Finance occupy one of the few major office buildings in the city's downtown, which continues to struggle despite promising business improvement efforts. The city's southern neighbourhoods tend to be considerably poorer than its northern sections, which are rapidly expanding as Toronto commuters move in. The southern half of the city consists of industrial zones and compact housing designed for mid-20th-century industrial workers, while the northern half has a suburban feel more typical of later decades.

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High wages paid to unionized GM employees have meant that these workers could enjoy a relatively high standard of living, although such jobs are scarcer today than they once were. During its post-WWII heyday, General Motors offered some of the best manufacturing jobs available in Canada and attracted thousands of workers from economically depressed areas of the country, particularly the Maritimes, rural Quebec and northern and eastern Ontario. The city was also a magnet for European immigrants in the skilled trades and boasts substantial Polish, Ukrainian, German and Russian ethnic communities.

Related Topics:
WWII - Maritimes - Quebec - Polish - Ukrainian - German - Russian

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Although the workforce at General Motors of Canada has shrunk in recent years, the company continues to make significant technology and capital investments at its sites in Oshawa. While the company's once essential role in the local economy has diminished, it remains the largest local employer. Many of its operations have been spun off to contractors. In most cases, new owners at the spun-off facilities are not bound by the collective bargaining agreements of the Canadian Auto Workers, and wages at such operations tend to be much lower than at General Motors itself.

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Many commuters have been enticed to Oshawa by relatively cheap housing prices and the rapid and regular rail service into downtown Toronto provided by GO Transit. The growth of subdivisions to house Toronto commuters will likely accelerate if the long-planned Highway 407 extension is built across the city's northern tier in the next decade. The trend suggests major social changes for Oshawa, which has long had a vigorous labour union presence and largely blue collar identity. Rising property values and the emergence of land speculation associated with suburban growth have created new dynamics for the local economy. While unchecked growth was largely accepted (even embraced) by Oshawans in the 1980s and 1990s, concern over urban sprawl has emerged.

Related Topics:
GO Transit - Highway 407 - Labour union - Blue collar - Land speculation

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In late 2004, the Greater Toronto Airports Authority announced a plan under which the Oshawa Municipal Airport would be closed and its traffic diverted to a major new Toronto reliever airport to be constructed in Pickering. The Oshawa airport largely handles traffic related to General Motors (emergency spare parts and executives); GM has indicated that a move of its air traffic to Pickering would not affect its operations. There is also recreational aviation at the Oshawa airport that will need to be diverted. The city is considering ambitious proposals to repurpose the airport lands.

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