OAKVILLE, Ont. (CP) -- Ford Canada will phase out a third shift at the body and paint shops at its Oakville, Ont., and eliminate about 500 jobs.
Canadian Auto Workers union officials told the Globe and Mail the phase-out will begin on October 1st.
This cutback follows an earlier decision by Ford to scrap a third shift in the plant's final assembly operation.
Ford hired about 350 people for that shift and another 150 transferred to Oakville from Windsor, Ont., but they were never put to work.
The federal government recently said it would provide $80 million to help reopen the mothballed Essex engine plant in Windsor and save about 300 jobs.
The engine plant closed last year, resulting in the loss of about 900 jobs.
The latest move comes amid a deep slump in the U.S. market and uncertainty at Ford about how sales of crossover utility vehicles made in Oakville will sell south of the border.
"The projections for the U.S. industry have been taken down substantially," Ford spokeswoman Lauren More told the Globe.