Around 4,300 unionized workers at three General Motors (GM) plants in Canada have initiated a strike. This action poses a threat to GM’s production of profitable full-size trucks. The strike is occurring at GM’s Oshawa assembly complex, St. Catharines powertrain plant, and the Woodstock parts distribution center, all located in Ontario.
The strike could disrupt GM’s production depending on its duration. The St. Catharines plant produces engines for various vehicles, powertrains for the Chevrolet Equinox and Corvette, and engine component parts.
In the Oshawa plant, workers are responsible for building Chevrolet Silverado trucks, which are among GM’s most profitable models. Additionally, the plant’s stamping operations supply various parts for GM North America.
As of Tuesday, GM had not provided a specific timeline for when the Canadian strike might start affecting auto production in the United States.
According to Wells Fargo, the impact of the strike is likely to be more significant at the St. Catharines plant. They pointed out that the majority of GM’s large SUVs and heavy-duty full-size pickups rely on V8 engines. Furthermore, approximately half of standard full-size pickups also use V8 engines. So, if the strike continues, it could lead to limited engine options for these vehicles.
Wells Fargo pointed out that the Oshawa plant is the smallest among GM’s pickup production facilities, making approximately 2,800 trucks every week. On Tuesday, GM’s shares saw a 1.7% increase.
The strike by the workers occurred because the Canadian union Unifor claimed that GM was not willing to match the contract that the labor union had negotiated with Ford Motor. Ford had offered wage increases of up to 25% in Canada.
Unifor’s National President, Lana Payne, stated, “The company is still falling short in meeting our pension demands, providing income support for retired workers, and taking meaningful steps to transition temporary workers into permanent, full-time positions.”
Employees at the CAMI Assembly Plant in Ingersoll, Ontario, are not participating in the strike because they have a separate agreement.
GM confirmed that discussions with Unifor would continue. This strike adds to the challenges GM is facing in the United States, where they are incurring significant daily losses due to the ongoing United Auto Workers (UAW) strike, which began on September 15.
According to Deutsche Bank’s estimate, GM has lost production of 34,176 vehicles since the UAW strike commenced. As of last week, the automaker reported having 442,586 vehicles in its inventory.
The UAW has initiated strikes at two GM assembly plants in the United States and 18 parts distribution centers, leading to the layoff of 2,300 U.S. workers because of the strike’s impact.
Unifor has been using a strategy called “pattern bargaining” in its negotiations. They reached an agreement with Ford first and then expected GM and Stellantis to follow suit. However, the UAW, with new leadership, decided not to use this approach.
Unifor represents approximately 18,000 Canadian workers at Ford, GM, and Stellantis, which is the parent company of Chrysler.
Across various industries, including airlines and automakers, labor unions have increasingly turned to strikes. This trend has been influenced by a tight job market and generally positive public support in the United States, despite a decline in union membership.
Around 4,300 unionized workers at three General Motors (GM) plants in Canada have initiated a strike. This action poses a threat to GM’s production of profitable full-size trucks. The strike is occurring at GM’s Oshawa assembly complex, St. Catharines powertrain plant, and the Woodstock parts distribution center, all located in Ontario.
The strike could disrupt GM’s production depending on its duration. The St. Catharines plant produces engines for various vehicles, powertrains for the Chevrolet Equinox and Corvette, and engine component parts.
In the Oshawa plant, workers are responsible for building Chevrolet Silverado trucks, which are among GM’s most profitable models. Additionally, the plant’s stamping operations supply various parts for GM North America.
As of Tuesday, GM had not provided a specific timeline for when the Canadian strike might start affecting auto production in the United States.
According to Wells Fargo, the impact of the strike is likely to be more significant at the St. Catharines plant. They pointed out that the majority of GM’s large SUVs and heavy-duty full-size pickups rely on V8 engines. Furthermore, approximately half of standard full-size pickups also use V8 engines. So, if the strike continues, it could lead to limited engine options for these vehicles.
Wells Fargo pointed out that the Oshawa plant is the smallest among GM’s pickup production facilities, making approximately 2,800 trucks every week. On Tuesday, GM’s shares saw a 1.7% increase.
The strike by the workers occurred because the Canadian union Unifor claimed that GM was not willing to match the contract that the labor union had negotiated with Ford Motor. Ford had offered wage increases of up to 25% in Canada.
Unifor’s National President, Lana Payne, stated, “The company is still falling short in meeting our pension demands, providing income support for retired workers, and taking meaningful steps to transition temporary workers into permanent, full-time positions.”
Employees at the CAMI Assembly Plant in Ingersoll, Ontario, are not participating in the strike because they have a separate agreement.
GM confirmed that discussions with Unifor would continue. This strike adds to the challenges GM is facing in the United States, where they are incurring significant daily losses due to the ongoing United Auto Workers (UAW) strike, which began on September 15.
According to Deutsche Bank’s estimate, GM has lost production of 34,176 vehicles since the UAW strike commenced. As of last week, the automaker reported having 442,586 vehicles in its inventory.
The UAW has initiated strikes at two GM assembly plants in the United States and 18 parts distribution centers, leading to the layoff of 2,300 U.S. workers because of the strike’s impact.
Unifor has been using a strategy called “pattern bargaining” in its negotiations. They reached an agreement with Ford first and then expected GM and Stellantis to follow suit. However, the UAW, with new leadership, decided not to use this approach.
Unifor represents approximately 18,000 Canadian workers at Ford, GM, and Stellantis, which is the parent company of Chrysler.
Across various industries, including airlines and automakers, labor unions have increasingly turned to strikes. This trend has been influenced by a tight job market and generally positive public support in the United States, despite a decline in union membership.
