HomeStock MarketUnifor, Canadian autoworkers union, approves labor agreement with GM, according to Reuters.

Unifor, Canadian autoworkers union, approves labor agreement with GM, according to Reuters.

Canadian Autoworkers Union Unifor Ratifies GM Labor Deal

Relief for General Motors as Canadian Union Approves Contract

Canadian labor union Unifor announced on Sunday that its members have voted in favor of a contract with General Motors (NYSE: GM). This comes as a relief for the automaker, which is also facing a larger strike by hourly workers in the United States.

Overwhelming Support for the Deal

The Canadian union, representing approximately 4,300 workers at GM facilities in Oshawa, St. Catharines, and Woodstock, reported that 80.5% of its members voted in favor of the deal.

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Swift Resolution and Pattern Bargaining

The union reached a tentative agreement with GM just 12 hours after workers went on strike at three Canadian GM facilities. The deal follows the pattern set with Ford Motor (NYSE: F), which reached an agreement with Unifor last month. The agreement includes base hourly wage increases of nearly 20% for production and 25% for skilled trades over a three-year period. It also reintroduces cost-of-living allowances (COLA) by the end of 2024.

Parallel Strike in the United States

In the United States, approximately 9,200 members of the United Auto Workers (UAW) union are currently striking, affecting two GM assembly plants and 18 parts distribution centers. Additionally, around 2,300 U.S. workers have been furloughed due to the impact of the UAW strike.

Next Steps for Unifor

Unifor has adopted a “pattern bargaining” approach in its negotiations, reaching a deal first with Ford and subsequently selecting GM as the second bargaining target. Reaching an agreement with Stellantis (NYSE: STLA), the parent company of Chrysler, is the next objective for Unifor.

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Improved Wages, Pensions, and Investment Commitments

Unifor has been advocating for improved wages, pensions, support in the transition to electric vehicles, and additional investment commitments from the automakers. It is important to note that the workers at GM’s CAMI assembly plant in Ingersoll, Ontario, are covered under a separate contract.

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