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back to index backAMERItalk September,  2016


GM auto workers in Canada OK new contract

The union representing Canadian auto workers won approval for a new four-year contract with General Motors Co., securing future investment for Canada's weakening auto sector and eventually giving GM more capacity for its profitable pickup trucks.

Nearly 65% of Unifor's rank-and-file GM members on Sunday ratified the pact notched by union and company negotiators last week. The deal clears the way for $544 million in investments by GM, mostly at its vehicle assembly plant in Oshawa, Ontario, which was threatened with closure by around 2019 without a commitment from the company.

The contract, which covers about 3,900 Unifor workers, eventually will allow GM to squeeze out more U.S. production of its full-size pickup trucks, the Chevrolet Silverado and GMC Sierra. Unifor's contract calls for about 70,000 partially assembled pickups a year beginning in early 2018 to be shipped to Oshawa from a GM truck plant in Fort Wayne, Ind., where they will be painted and finished, said a union official who declined to be named.

GM has been working to boost production of its pickups -- the company's biggest moneymaker -- amid record U.S. auto sales and a sustained period of low gas prices. GM North America President Alan Batey said in an interview last week that the company "could use some more" pickups in its battle with Ford Motor Co. and Fiat Chrysler Automobiles NV's Ram division.

To read entire article, please click here.

Source: MarketWatch - GAI






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