Autoworkers in Canada ratify new labor contract with General Motors, avoiding extended strike

New York
CNN
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Autoworkers in Canada ratified a new labor contract Sunday with General Motors, averting a resumption of a strike that had lasted about 13 hours on Tuesday. This development brings relief to the members of the Unifor union, who voted 80% in favor of the new deal. The contract guarantees them base-wage increases of nearly 20% over the duration of the contract and secures improved pension benefits.

The favorable vote on the new contract with GM contrasts with the earlier vote by the same union’s members at Ford, where only 54% had approved a similar contract. The GM strike had the potential to disrupt operations at GM’s US plants that rely on engines and transmissions supplied by Unifor members from Canadian facilities.

The strike was narrowly averted as the ratification of the deal narrowly succeeded. If the tentative deal had been rejected by the rank-and-file members of Unifor, the strike would have resumed. This situation mirrors the recent rejection by the United Auto Workers union members of a tentative labor agreement with Mack Trucks, resulting in an ongoing strike.

Lana Payne, the National President of Unifor, expressed her pride and commended the union members for their unity during the short but impactful strike. She stated, “This agreement reflects true collective bargaining. Our goal was to bring more fairness and equity to auto workplaces and to lift everyone up. We did that.” Marissa West, President and Managing Director of GM Canada, also acknowledged the efforts and contributions of the represented team members, emphasizing the increased wages, benefits, and job security secured through the deal.

Moving forward, Unifor will focus on securing a similar contract for its members at Stellantis, the automaker responsible for producing vehicles under various brands in the North American market.

It is worth noting that the labor situation in Canada differs from that in the United States, where strikes against GM, Ford, and Stellantis are ongoing. More than 33,000 members of the United Auto Workers union are currently on strike against the three companies. Initially, the strike targeted one assembly factory for each automaker and later expanded to include additional plants and distribution centers.

The negotiation process between the union and the companies appears to be challenging, with both sides offering contrasting public comments. While no deal seems imminent, it remains uncertain how the situation will progress.

UAW President Shawn Fain has warned that the strike may expand without prior notice if the companies fail to improve their offers. Ford executives have remarked that they have reached the limits of their ability to provide additional financial incentives to reach an agreement.

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