Canadian auto union Unifor ratifies landmark two-year contract with GM

Members of Unifor at the CAMI Assembly and Battery Assembly plants in Ontario have overwhelmingly ratified a new two-year contract with General Motors (GM). The agreement, approved by 95.7% of voting members, marks a substantial victory for the union, securing notable pay increases and strategic positioning for future negotiations.

The newly ratified contract introduces a series of wage hikes that will significantly boost workers' compensation over the next three years. Effective immediately, workers will see a 10% increase in their pay, followed by a 2% raise in September 2025, and an additional 3% increase in July 2026. This phased approach ensures continuous growth in workers' earnings throughout the contract period.

Skilled trades workers are set to benefit even more substantially from the new agreement. The contract stipulates a remarkable 20.25% wage increase for this category of workers, recognizing their specialised skills and importance in the rapidly evolving automotive manufacturing landscape.

Unifor National President Lana Payne highlighted a strategic aspect of the new contract, stating, "For the first time Unifor has successfully negotiated a two-year contract term that will align CAMI members with the union's Detroit Three negotiations to combine the future bargaining power of more than 5,600 GM members." This alignment is a calculated move by the union to strengthen its position in future negotiations by synchronising bargaining cycles with other major automotive manufacturers.

The CAMI Assembly and Battery Assembly plants, represented by Unifor Local 88, play a crucial role in GM's electric vehicle (EV) strategy. With more than 1,300 members, these facilities are responsible for manufacturing the Chevrolet BrightDrop EV 600 and EV 400, as well as Ultium battery modules. This production focus underscores the growing importance of EV manufacturing in Canada's automotive sector and the critical role of skilled workers in this transition.

The new contract's expiration date is set for September 20, 2026, strategically timed to coincide with negotiations involving other major automakers. This synchronisation is expected to enhance Unifor's bargaining leverage in future talks, potentially leading to more favourable outcomes for workers across the Canadian automotive industry.

The overwhelming approval rate of 95.7% reflects strong member satisfaction with the negotiated terms. It also indicates a high level of unity among Unifor members, which could prove beneficial in future labour discussions and industry-wide initiatives.

As of the time of reporting, General Motors had not responded to requests for comment on the ratification. However, the approval of this contract is likely to be seen as a positive development for the company, ensuring labour stability at key production facilities for the next two years.

This agreement comes at a time when the automotive industry is undergoing significant transformations, particularly in the shift towards electric vehicle production. The substantial wage increases and strategic alignment of negotiation timelines demonstrate Unifor's proactive approach in addressing both the immediate needs of its members and the long-term challenges facing the industry.

The ratification of this contract sets a precedent for upcoming negotiations in the Canadian automotive sector. It may influence discussions not only with other GM facilities but also with competing automakers, potentially raising the bar for worker compensation and benefits across the industry.