Canadian workers' union Unifor ratified a new agreement with Detroit-based automaker General Motors Co GM on Sunday even as the automaker continues to reel under the impact of the United Auto Workers (UAW) union’s strike in the U.S.
What Happened: A majority of Unifor members voted in favor of a new three-year collective agreement that covers over 4,300 workers at the Oshawa Assembly Plant, St. Catharines Powertrain Plant, and Woodstock Parts Distribution Centre.
The new agreement follows the pattern agreement negotiated by the union with Ford Motor Co F in late September and includes a base hourly wage increase of up to 25%. Under the new contract, general wages would increase 10%in the first year, 2% in the second, and 3% in the third.
Other key updates in the new contract include reactivation of the cost of living allowance, improvements to pension plans, and elimination of the use of the full-time/ temporary classification by Aug. 1, 2026, at the Oshawa assembly.
"On top of getting the pattern in place, we also needed to deal with our own unique challenges at GM. With this contract in place, hundreds of part-time workers will be converted to full-time status immediately and the abuse of the temporary worker program will come to an end," said Unifor GM Master Bargaining Chair Jason Gale.
Why It Matters: Unifor opened negotiations with all three Detroit automakers- Ford Motor Co, General Motors, and Stellantis NV in early August for better pay and pensions. However, it decided to concentrate on Ford on nearing contract expiry. The idea was to reach an agreement with Ford, which could set the ground for contracts with the other two.
Now that an agreement has been ratified with GM as well, the union will now look to negotiate with Chrysler-parent Stellantis.
Meanwhile, the UAW union’s simultaneous strike against the Detroit three in the U.S. that kickstarted on Sept. 15 at midnight has completed a whole month with no end in sight.
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