Ford delays EVs in Oakville to 2027, extends layoffs

What’s happening at Ford Canada?

Ford has recently announced a significant shift in its electric vehicle (EV) production timeline at its Oakville, Ontario facility, pushing the start date from 2025 to 2027. This delay not only marks a pivot in response to the evolving EV market and advancements in battery technology but also results in extended layoffs for its workforce, affecting non-unionized employees as well as unionized workers.

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Amid governmental incentives aimed at building a green automotive sector, this development raises concerns about job security and the future of automotive manufacturing in Canada. Here are the key aspects of Ford’s announcement:

• Strategic delay: Citing the need for additional time to let the consumer market for larger EVs mature and to leverage emerging battery technologies, Ford is postponing the launch of electric SUV production at its Oakville plant.
• Implications for employees: The extended delay in EV production implies prolonged layoffs for the majority of the facility’s 2,700 workforce. While unionized workers have certain protections through their collective agreement with Ford, the impact on non-unionized employees, including those in managerial, administrative, and technical roles, is concerning.
• Government support and market dynamics: Despite receiving $580 million from federal and provincial governments to support the transition towards EV manufacturing, Ford’s decision reflects broader challenges in the EV market, including consumer hesitancy and high EV prices.

“We are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time,” said Jim Farley, Ford CEO, in a statement.

Temporary layoffs: Are they legal?

The topic of temporary layoffs is a source of stress and uncertainty for many non-unionized employees in Ontario and across Canada. It’s crucial to understand that temporary layoffs are generally illegal.

A temporary layoff can be seen as a constructive dismissal. This is a situation where your employer makes a significant change to your employment without your agreement, effectively ending your employment relationship. In such cases, you might be entitled to a severance package as if you were terminated without cause. Full severance pay in Ontario can be as much as 24 months’ pay.

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There are scenarios where an employer might legally lay off employees temporarily:

• If the employee consents to the layoff.
• If there’s a history of layoffs in the company that you were aware of or part of.
• If your employment contract includes a clear clause that allows for temporary layoffs.

If you’re a non-unionized employee uncertain about your rights regarding temporary layoffs, or if you believe your employer may not have the right to lay you off, it’s essential to seek professional advice before taking any action. Contacting Samfiru Tumarkin LLP for a consultation with an employment lawyer can clarify your position and help you understand your options.

WATCH: Employment lawyer Lior Samfiru explains how constructive dismissals work on an episode of the Employment Law Show.

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.