General Electric has announced that it will end most manufacturing operations at its Peterborough plant by September 2018, due to an economic slowdown in orders from the oil and gas industry.
Officials informed workers at the company’s Park Street plant of the decision at a meeting on Friday morning (August 25).
General Electric’s first manufacturing plant in Canada was founded in Peterborough in 1892 by Thomas Edison. At its height in the 1960s, General Electric employed 6,000 people in Peterborough.
Almost 360 staff in the plant’s motors division will lose their jobs. Another 50 staff in the engineering division will not be affected.
The closure will take place over the next 12 months, and workers will be supported during that period with counselling, training, and retirement planning.
General Electric has not been investing in its Peterborough operations in recent year. In 2016, the company announced that it would be relocating an engine manufacturing plant from Waukesha, Wisconsin to Welland, Ontario instead of Peterborough. In January 2017, General Electric cut another 150 jobs in Peterborough.
Also on Friday morning, Peterborough Mayor Darryl Bennett released the following statement on the announcement:
My immediate concern is for the workers and the families in our community affected by this winding down of General Electric’s operations in Peterborough. It will be a difficult time for many residents who are connected with GE or who have historical ties to this company. This year marked the 125th anniversary of GE in Canada, starting here in Peterborough in 1892.
The winding down of GE in Peterborough is a business decision that’s directly related to the slow down in orders from the oil and gas industry. It’s a drastic reversal from 2014 when GE announced that it would be adding up to 250 new jobs in Peterborough to build motors for the TransCanada Energy East pipeline, which has been delayed through the application process. Instead, GE has had to reduce the size of its workforce in Peterborough over the last several years. I understand it currently employs about 358 workers, well down from the 6,000 people employed by GE in Peterborough in the 1960s.
We are looking forward to the continued presence of BWXT Nuclear Energy Canada, which purchased GE’s nuclear energy business last year.
In the coming days, I will be requesting a meeting with both our MP and our MPP to discuss how our governments can assist with securing our community’s long-term economic foundation. Over the years, we have asked for assistance and approvals for employment land growth, the VIA Rail proposal for a new High Frequency Rail service through Peterborough, and local transportation network improvements needed to support growth. We need to continue to diversify our economy and to build the infrastructure that supports job creation.
