Negotiation between General Motors Canada and labour union averts strike
There had been fears that the Oshawa facility might shut down in 2019 but Unifor National President Jerry Dias, who led the negotiations, said the tentative contract ensured GM’s commitment to investment worth hundreds of millions of dollars.
According to media reports, Dias stated that the GM facility in Oshawa will stay open and will the first and only plant in North America that would build both cars and trucks.
However, Dias did not say anything about production in the Oshawa unit beyond 2019 but was also hopeful of new employment opportunities in both the short and long-term, reports said.
According to media reports, the four-year pact covering about four thousand autoworkers in Ontario, included increase in wages, signing bonuses and lump-sum payments.
The future of all the facilities in Ontario will be bright as this tentative deal, added Dias, would also secure investment for the GM parts distribution centre in Woodstock, Ontario, media reported.
After the agreement with GM, Dias believes there will be a decline in migration of auto jobs from Canada to Mexico.
Rather, he was optimistic of some production coming from Mexico to the St. Catharines plant.
The only negative change in the tentative agreement, said Dias, was that the company will have to pay a defined contribution pension plan to the new employees, quoted media reports.
According to reports, GM Canada would work with the government on potential support and added that all the three sites in Ontario would be covered.
Dias said that all further details would be provided after a ratification vote.
Unifor had selected GM as a target company in the opening round of contract talks with the Detroit Three automakers, according to media reports.
Dias further clarified that any deal reached with GM would serve as a template for negotiations with Ford and Fiat Chrysler but there was no specific mention with which automaker the union would negotiate next, media reported.
Reporting by Asha Bajaj
Image: GM Canada Twitter
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