Unifor and General Motors have averted strike action at the last moment. The two have been in dispute over contract talks. A general four-year contract between Unifor and employees of General Motors, Ford Motor Company and Fiat Chrysler Automobiles expired Monday. General Motors was selected by the union as its strike target for talks regarding the new contract. The deal between Unifor and GM would apply to the other auto manufacturers.
The results of the talks could have a significant effect on the future of GM’s Oshawa car assembly plant. They could save 2,500 jobs or result in potential strike action which would take the GM plant a step closer to being closed permanently. General Motors is already considering closing one of the two assembly lines at its Oshawa plant, and production moved elsewhere next year.
The dispute was between Unifor and general Motors regarding the future of production at the Oshawa plant in Ontario. GM has stated that no products were allocated for production at the plant. Future product decisions would only be made after the union deal was completed.
Strike action by Unifor members has now been averted by a deal agreed early today. A strike would have resulted in some of GM’s Canadian manufacturing facilities. Each of the parties has agreed a compromise that should secure the future of the Ontario plant.
What GM Offered: General Motors will transfer some engine assembly from Mexico to the Ontario plant. Wages will be increased.
What Unifor Offered: The union agreed to a change in the company’s pension plan for new employees to a pure defined contribution plan. Veteran employees have defined benefit pensions while new employees have a hybrid between this and a defined contribution plan. Now all will be on the latter.
Union members will vote on this deal Sunday. According to Jerry Dias, the Unifor union president, the deal is worth hundreds of millions of dollars to the Oshawa plant and the fear of a closure of the plant in 2019 is now over.
There was no comment as to the models that would be built in Oshawa, although it will involve cars and trucks. The Oshawa plant currently builds only cars. The scheduled closure on one line goes ahead in 2017, but the company has agreed to hire workers over the long and short term. The major outcome is that Unifor and General Motors have averted a strike that was of no benefit to of either of two.
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