After weeks of uncertainty and threats of striking, General Motors and Unifor, the union representing Canada's auto workers, have agreed to a new contract that results $420 million in investments from the manufacturer. The includes new product commitments, raises for employees, and full-time status for temporary workers.
The deal, which was reached just minutes before the midnight deadline on September 19, also includes new investment and product commitments for GM's Oshawa, Ontario, assembly plant, where no vehicles were slated to be produced after 2019. It also includes new production volume at the St. Catherine's, Ontario, engine and transmission plant.
But while the Oshawa plant is safe, it's beleaguered consolidated line, which builds the Chevrolet Equinox, will close.
The agreement also creates new jobs at GM’s Canada facilities and provides a 2 percent wage increase for the 3,900 workers covered by the contract, said Unifor President Jerry Dias. It also includes a signing bonus and lump-sum payments. Dias also said the roughly 700 temporary workers at GM would be given full-time status under the deal.
The new contract comes after roughly two weeks of intense negotiations between Unifor and GM. Dias had signaled that the workers would go on strike if a tentative deal failed to include investments and product commitments at key GM plants.
This new agreement sets the tone for upcoming negotiations with Ford Motor Company and Fiat Chrysler Automobiles. Dias said that Unifor has selected FCA as the next manufacturer they plan to negotiate with. With this new deal with GM in hand, a contract with FCA is expected by the 11:59 pm deadline on October 10.
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