Unimotor Layoffs 2026: St. Thomas Severance Pay

Unimotor employees in St. Thomas, Ontario, learned in October 2026 that some production will move to Mexico, resulting in an undisclosed number of layoffs. The changes were reported on October 19 and will take place over the next 18 months.

Approximately 90 people work at the Gaylord Road auto parts facility, which is owned by Standard Motor Products (SMP). The company plans to move some production to its plant in Reynosa, Mexico, while keeping other operations in St. Thomas.

Facing a Unimotor layoff? The company has promised severance packages, but its standard offer isn’t necessarily everything you’re owed. Non-unionized Ontario employees can receive up to 24 months’ compensation when terminated without cause.

Why Is Unimotor Cutting Jobs In St. Thomas?

Standard Motor Products is reducing production at Unimotor’s St. Thomas facility and transferring some manufacturing to Mexico.

The company cited global competitiveness and market pressures as the reasons for the move, rather than U.S. tariffs.

Here’s what has been announced:

• October 2026: Employees were informed that some St. Thomas production would move to Mexico.
• Jobs affected: The facility employs approximately 90 people. The number of positions being eliminated hasn’t been announced.
• Timeline: The production transfer is expected to take place over the next 18 months.
• Severance: SMP has said affected employees will receive severance packages, continued healthcare coverage and career-transition assistance.

The plant produces automotive blower motors, cooling fan motors and other components. It has operated in St. Thomas since 1995.

The production changes were reported by 94.1 St. Thomas Today on October 19.

How Much Severance Does Unimotor Owe Ontario Employees?

Non-unionized Unimotor employees terminated without cause in Ontario can receive up to 24 months’ compensation.

What you’re owed is based on your age, years of service, position, compensation and employment contract—not simply the number of weeks Unimotor chooses to offer.

For employees who have spent 10, 15 or 20 years at the plant, severance pay in Ontario can represent a substantial amount of money.

Your package should account for the compensation you’re owed, including wages, benefits, vacation pay and other employment compensation.

Get an initial estimate using our free Severance Pay Calculator.

Does Moving Production To Mexico Affect Severance?

No. Moving manufacturing work outside Canada doesn’t eliminate an employer’s severance obligations.

If Unimotor eliminates your position and terminates your employment without cause, you’re owed proper severance.

That remains true whether the company transfers production to Mexico, reduces operations in St. Thomas or reorganizes its workforce.

The reason your job is disappearing doesn’t erase your rights.

What If Unimotor Offers You A Different Job Or Reduces Your Hours?

Not every restructuring begins with a termination letter.

If Unimotor significantly reduces your hours or pay, demotes you or makes substantial changes to your responsibilities, you don’t automatically have to accept those changes.

They can amount to constructive dismissal in Ontario, allowing you to pursue severance.

Don’t resign or agree to major changes before understanding your rights.

What Should Unimotor Employees Do Before Signing?

1. Get your offer in writing. Keep your termination letter, severance agreement and employment documents.
2. Check your years of service and compensation. Long-serving employees can be owed far more than the company’s initial offer.
3. Have your severance reviewed. Understand what you’re owed before signing a release.

Having your severance reviewed doesn’t mean taking Unimotor to court. We resolve the vast majority of severance disputes through negotiation.

Samfiru Tumarkin LLP represents non-unionized employees across Ontario. Our Toronto and London employment lawyers help manufacturing workers, technicians, supervisors, managers and other employees get what they’re owed.

Unimotor Layoffs: Common Questions

Is Unimotor Closing Its St. Thomas Plant?

No full closure has been announced. Standard Motor Products plans to transfer some manufacturing operations to Mexico over the next 18 months while retaining other operations in St. Thomas.

How Many Unimotor Employees Are Being Laid Off?

Approximately 90 people work at the St. Thomas facility. The company has confirmed that some employees will be affected but hasn’t disclosed the number of layoffs.

Can Unimotor Employees Receive 24 Months’ Severance?

Yes. Non-unionized Ontario employees terminated without cause can receive up to 24 months’ compensation based on their circumstances.

Does Unimotor Have To Pay Severance If Production Moves To Mexico?

Yes. Relocating production doesn’t eliminate the company’s severance obligations to employees terminated without cause.

What If I’m A Unionized Unimotor Employee?

Unionized employees should contact their union representative about layoff rights, severance and any protections in their collective agreement.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to Unimotor and SHOULD NOT be read as suggesting any improper conduct on the part of Unimotor, or a relationship between Samfiru Tumarkin LLP and Unimotor.