The labor union representing employees at General Motors has announced that its members have overwhelmingly approved new contracts with the automaker. Unifor and GM reached tentative agreements on August 22 for over 4,600 auto workers in Ontario, with union members voting on them over the weekend.
According to a news release issued by the union on Sunday, the three-year collective agreements include wage increases for full-rate production workers to $50.20 per hour and skilled trades workers to $62.71 per hour. In Oshawa, St. Catharines, and Woodstock, 80.5% of members voted in favor, while Ingersoll saw a 96.5% approval rate.
These negotiations followed an agreement between Unifor and Ford earlier in the month, with the union stating that the wage increases with GM mirror the three-percent annual increments agreed upon with Ford. Unifor National President Lana Payne highlighted that the agreements entail over $1 billion in investments in Canadian GM facilities.
GM Canada President and Managing Director Jack Uppal expressed in a statement that the ratification of the contracts will support employees, enhance manufacturing operations, and lay a solid foundation for GM’s future in Canada. The talks with GM were described as challenging, particularly due to production halts at the CAMI Assembly Plant in Ingersoll and the majority of members facing indefinite layoffs.
Uppal mentioned that in Oshawa, an additional $144 million investment will bring next-generation GMC Sierra Heavy-Duty production to the plant. Additionally, at St. Catharines Propulsion, a new $215 million investment will establish the plant as the exclusive source for a next-generation transmission, with total investments exceeding $900 million.
Other notable aspects of the deal, as highlighted by Unifor, include the renewal of a cost-of-living allowance, a $10,000 productivity and quality bonus for eligible members, and a $2,000 December bonus for qualifying members. Trevor Longpre, Unifor’s General Motors bargaining chairperson, emphasized the progress made in securing stable auto jobs and reinforcing Canada’s automotive industry.
The ongoing trade war context, including the imposition of 25% U.S. tariffs on vehicles, was noted as a significant backdrop. With U.S. President Donald Trump’s announcement of potentially increasing tariffs to 50% in 2027, the fate of Canadian auto plants has become a pivotal issue in U.S.-Canada trade negotiations. Discussions on reducing duties on medium and heavy-duty vehicles crucial for Canadian factories remain unresolved following recent trade talks.
GM’s Chevrolet Silverado pickup-truck production in Canada, impacted by the tariffs, represents about 17% of the total production. Efforts to navigate these challenges and support the Canadian auto industry have been ongoing amidst the evolving trade dynamics between the two countries.