The labor union for employees at General Motors has announced that its members have overwhelmingly voted to approve 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 casting their votes over the weekend.
According to a statement released by the union on Sunday, the newly ratified three-year collective agreements include wage increases for full-rate production workers to $50.20 per hour and skilled trades employees to $62.71 per hour. The voting results showed that members in Oshawa, St. Catharines, and Woodstock supported the agreements by 80.5%, while those in Ingersoll showed a 96.5% approval rate.
Negotiations between the union and automaker commenced earlier this month following Unifor’s agreement with Ford. Unifor stated that the contracts with GM align with the three percent annual wage hikes agreed upon with Ford. Unifor’s National President Lana Payne emphasized that the deals entail investments exceeding $1 billion in Canadian GM facilities.
GM Canada President and Managing Director, Jack Uppal, expressed satisfaction with the ratification, noting that the outcome supports employees, enhances manufacturing operations, and lays a solid foundation for GM’s future in Canada. The negotiations with GM were described as challenging, especially with the CAMI Assembly Plant in Ingersoll facing production idleness and a majority of its members on indefinite layoff.
Despite the hurdles, Unifor affirmed its commitment to press for production resumption at CAMI Assembly and highlighted that GM designated it as the primary consideration for Canadian Armed Forces defense work if awarded to GM. The agreements also entail a cost-of-living allowance renewal, 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 bolstering Canada’s automotive presence. However, he stressed the ongoing efforts to bring production back to CAMI and provide support until all workers at the plant are back on the job.
The automotive sector in Canada is facing challenges due to the 25% U.S. tariffs on vehicles, with President Donald Trump intending to increase them to 50% by January 1, 2027. The fate of Canadian auto plants has become a pivotal issue in the stalled U.S.-Canada trade negotiations, particularly regarding duties on medium and heavy-duty vehicles crucial for Canadian factories.
U.S. automakers had hoped for relief from the 25% tariffs, which have impacted shipping costs for vehicles and parts across the border. About 17% of GM’s Chevrolet Silverado pickup-truck production takes place in Canada. The trade talks between the U.S. and Canada concluded recently without resolving critical issues related to tariffs on vehicles.