General Motor’s unionized Canadian workers ratify four-year labor deal

Article by Anita Panait, on September 29, 2012

General Motors' unionized workers in Canada have ratified a four-year labor agreement with the United States-based carmaker, the Canadian Auto Workers union disclosed. According to CAW, around 73 percent of the GM workers who cast their votes expressed support for the deal.  The labor agreement involves a $3,000 quality and productivity bonus for workers upon ratification. It also includes cost of living lump sum payments of $2,000 in 2013, 2014 and 2015.

The agreement also provides protection of current pension benefits for current workers, as well as investment and employment commitments in all locations. The labor agreement with GM is the second deal to be reached with a Detroit 3 automaker in Canada after unionized workers at Ford Motor Co. ratified last Sunday a similar agreement with the automaker.

According to the CAW, around 82 percent of voting Ford workers said yes to the agreement. On Saturday and Sunday, it will be the turn of unionized workers in Chrysler Group LLC’s Canadian operations to vote on their agreement with the CAW. Chrysler and CAW reached a tentative four-year agreement late Thursday. The GM ratification was expected, although discussion between the parties went rough since GM held that labor costs had to be reduced.

Under the deal, GM has committed to creating around 900 new jobs at its Canadian operations by adding a third shift to its "flex" line in Oshawa, Ontario. Reflecting the agreement forged with Ford, the GM deal involved freezing wages for current workers for the first three years, although it provides for a cost-of-living adjustment in the fourth year. GM’s workers are entitled to a series of lump-sum bonuses. The agreement also stipulates that new hires will start at a lower hourly rate than under the previous deal and it will take longer to reach the peak of the pay scale.

Topics: gm, canada

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016