GM reaches deal with Canadian Union, will ship production from Mexico

Unifor and General Motors of Canada have reached a tentative contract settlement, averting a strike that was scheduled to begin on Monday night at 11:59 p.m. ET, Canadian media outlets reported.

The four-year pact, which covers about 4,000 autoworkers in Ontario, includes wage increases, signing bonuses and lump-sum payments.

The agreement with GM will see some unspecified production coming from Mexico to the St. Catharines plant, reversing a trend that has been a “straight migration of auto jobs from Canada to Mexico”, Unifor president Jerry Dias said.

There had been fears the Oshawa facility might shut down in 2019, but Dias said the contract ensures a commitment by the company worth hundreds of millions of dollars.

“Our fear of a closure in 2019 is now over,” he said. “The facilities clearly have a bright future.”

Dias didn’t divulge what will be built in Oshawa beyond that year, but said it will be the “first and only plant in North America that will have the ability to build both cars and trucks” and added there will be additional jobs in both the short and long-term.