Oshawa - Economy

Economy

Oshawa is headquarters to General Motors Canada, which has large-scale manufacturing and administrative operations in the city and employs many thousands both directly and indirectly. Since Windsor, Ontario houses Chrysler Canada headquarters, the two cities have something of a friendly rivalry for the title of "Automotive Capital of Canada". Currently, Oshawa holds this title.

The revenue collection 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 business improvement efforts. The city's older southern neighbourhoods tend to be considerably less affluent than its more suburban 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 early 20th century industrial workers, while the northern half has a suburban feel more typical of later decades. High wages paid to unionized GM employees have meant that these workers could enjoy a relatively high standard of living, although such jobs are much scarcer today than they once were. During its post-World War II 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, Newfoundland, rural Quebec and northern Ontario. The city was also a magnet for European immigrants in the skilled trades, and boasts substantial Polish, Ukrainian, Hungarian, Croatian, German, Slovak and Russian ethnic communities.

Although the workforce at General Motors of Canada has shrunk dramatically 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.

Oshawa has become one of the fastest growing cities in Canada, although statements to this effect are often in reference to the Census Metropolitan Area, which includes neighbouring Whitby and Clarington. Many commuters have been enticed to Oshawa by comparatively low housing prices and the regular rail service into downtown Toronto provided by GO Transit and Via Rail. The growth of subdivisions to house Toronto commuters will likely accelerate when the long-planned Highway 407 extension is built across the city's northern tier by 2013. 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) in the 1980s and 1990s, concern over urban sprawl has emerged.

In late 2004, the Greater Toronto Airports Authority announced a plan under which the Oshawa Airport would be closed and its traffic diverted to a major new Toronto reliever airport to be constructed in Pickering. The Oshawa airport handles occasional 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. The airport also handles significant general aviation, two flight training facilities, and numerous other aviation and non-aviation related companies, all of which would need to be diverted or relocated. Significant helicopter support services are also provided for police, military, and HydroOne aircraft. The city has considered ambitious proposals to repurpose the airport lands, but as of January 2006, significant upgrade work is being performed on the main terminal building by the city itself, signalling that the city has no immediate plans to close the busy facility, understanding its importance to the community and local economy (injecting $52 million yearly). Additional aviation related construction is also taking place on the airport lands.