In a sign of just how many jobs GM will slash in the next three years, many in St. Catharines, Ont., are counting themselves lucky that the city is only set to lose 130 positions.

“There's 30,000 [total job cuts],” St. Catharines Mayor Timothy Rigby said. “We're getting a pretty good deal compared to what the U.S. is getting.”

About 130 employees at a St. Catharines General Motors of Canada Ltd. plant will lose their current jobs because of cuts announced yesterday.

The cuts will be in the Ontario Street plant, where GM produces connecting rods, rear strut assemblies and other components. The better-performing Glendale Avenue plant, where GM produces several types of engines, will not see any cuts. However, union officials say employees whose positions are being cut will either be absorbed into another plant, given an early retirement offer or similar option, and not simply shown the door.

The cuts come as part of a broad corporate restructuring plan announced by parent General Motors Corp. The auto giant will close 12 facilities and slash 30,000 jobs continent-wide — including about 3,900 GM Canada jobs in Ontario at operations in Oshawa, Ont., and St. Catharines — by 2008 to cut costs.

The cuts at St. Catharines aren't as big as those being made at GM's Oshawa plants, and will likely come in the form of early retirement and other similar options.

“When we're in a situation like this, we use attrition whenever we can,” said Pam McLaughlin, a spokeswoman for GM in St. Catharines. The average age of plant employees is about 49, she added.

“Given the age of the work force, we're hoping it'll mostly be attrition.”

Ms. McLaughlin said GM is also looking at options such as “career transitioning” — training workers for other types of jobs — in order to help laid-off workers find other kinds of employment. However, it is not yet clear how the cuts will play out, given they're not scheduled for another three years.

While many in St. Catharines were disappointed by the announcement, most weren't surprised.

“The reality is that GM has some serious market problems, as you can tell by their announcement today,” said Al Simpson, president of the St. Catharines Chamber of Commerce. “The cuts in St. Catharines were sort of expected because they were made to a plant that was old and worn,” he said, referring to the components plant.

In total, about 3,600 employees work at GM in St. Catharines, making the auto giant the city's biggest employer. Since 1997, GM has invested $1.6-billion in its St. Catharines operations, including $170-million recently to raise capacity from 800 to 1,200 units a day.

That's a sign the company is here to stay, said Walt Lastewka, MP for St. Catharines. “The good news is that is solidifying that they're staying in St. Catharines,” he said.