The labor union representing employees at General Motors has reported a significant majority in favor of approving new agreements with the automaker. Unifor and GM reached preliminary labor deals on August 22 for over 4,600 autoworkers in Ontario, with union members voting on them during the weekend.
In an announcement on Sunday, the union disclosed that the three-year collective contracts entail wage hikes to $50.20 per hour for full-rate production workers and $62.71 per hour for skilled trades employees. Voting results showed that members in Oshawa, St. Catharines, and Woodstock supported the agreements by 80.5%, while those in Ingersoll backed them by 96.5%.
Negotiations between Unifor and GM commenced earlier this month following an agreement with Ford. Unifor highlighted that the wage increases align with the three-percent annual increments at Ford. Unifor National President Lana Payne emphasized that the deals secure over $1 billion in investments for GM facilities in Canada.
GM Canada President and Managing Director Jack Uppal stated that the ratification supports employees, fortifies manufacturing operations, and lays a robust foundation for GM’s future in the country. Unifor acknowledged the challenges during talks, especially with production halted at the CAMI Assembly Plant in Ingersoll and most members there on indefinite layoff.
The union pledged to advocate for the resumption of production at CAMI Assembly and revealed that GM designated it as the primary consideration plant for potential Canadian Armed Forces defense projects. Additionally, GM plans to invest $144 million in Oshawa for the next-generation GMC Sierra Heavy-Duty production and $215 million in St. Catharines for a new transmission line.
Other key aspects of the deal include a cost-of-living allowance renewal, a $10,000 productivity and quality bonus, and a $2,000 December bonus for eligible members. Unifor’s General Motors bargaining chairperson, Trevor Longpre, emphasized the progress made in securing stable auto jobs and strengthening the Canadian footprint.
The agreements come against the backdrop of a trade war, with Canada’s auto sector facing challenges due to U.S. tariffs on vehicles. Trade negotiations between the U.S. and Canada recently stalled, impacting crucial issues like duty reductions on medium and heavy-duty vehicles vital for Canadian factories. U.S. automakers sought relief from the tariffs that have escalated shipping costs for vehicles and parts across the border.
Approximately 17% of GM’s Chevrolet Silverado pickup-truck production, a top-selling model, is based in Canada. The fate of Canadian auto plants has emerged as a central concern in the ongoing trade discussions between the U.S. and Canada.