Key Takeaways

  • Unifor—Canada's largest private-sector union, representing autoworkers at the Detroit Three's Canadian plants—issued a press release on August 22 announcing a tentative three-year labor agreement with General Motors, covering approximately 4,600 hourly workers across four facilities.
  • The tentative agreement covers workers at GM's Oshawa Assembly Plant, CAMI Assembly Plant, St. Catharines Powertrain Plant, and Woodstock Parts Distribution Centre.
  • “We began these negotiations amid tariff uncertainty and ongoing U.S. trade aggression. Thanks to the hard work of every member of the bargaining team, we have reached an agreement that ensures consistency with the pattern established with Ford,” said Trevor Lumprey, Unifor's lead GM negotiator, in a statement.

In-Depth Analysis

Negotiations between Unifor and GM began on August 10, and the union stated that the new labor agreement has received full endorsement from Unifor's GM Master Bargaining Committee. Further details of the agreement will be presented to members at ratification meetings scheduled for August 29-30.

“Our bargaining committees worked diligently during one of the most challenging periods in history to reach these agreements, delivering significant wage and benefit increases for workers,” said Lana Payne, Unifor's National President, in a statement.

GM's Oshawa Assembly Plant currently produces Chevrolet Silverado light- and heavy-duty pickups on two shifts. According to the company in February, it is the only GM facility in North America that builds both models on the same production line.

In the first round of negotiations with Ford last month, Unifor secured 3% annual wage increases for Canadian workers over the next three years. The agreement also includes Ford's commitment not to close or sell any Canadian plants over the next three years. Ford also agreed to invest $500 million in its Essex Engine Plant and $400 million in its Oakville Assembly Plant for Super Duty F-Series truck production. Both plants are located in Ontario.

Unifor will next enter labor negotiations with Stellantis, whose current three-year agreement expires on September 20.

However, in an August 14 bargaining update, Unifor stated that Stellantis had informed the union of its intention to discuss with another company the potential sale of its Brampton Assembly Plant in Ontario. Approximately 2,200 Unifor members at the plant have been on temporary layoff since production ceased in December 2023, originally planned for retooling to build the Jeep Compass electric SUV, but delayed due to slowing EV demand.

In October 2025, Stellantis announced that future production of the Jeep Compass would move to the U.S. as part of a $13 billion manufacturing investment, leading to an indefinite shutdown of the Brampton plant. These plans could affect the negotiation process between Unifor and Stellantis.

Unifor stated that, under the terms of the collective agreement, automakers must provide at least one year's notice before closing or selling any plant in Canada.

Unifor's initial negotiations with the Detroit Three have also been impacted by tariff threats and trade tensions with the U.S., which have prompted some automakers to reassess their previous manufacturing commitments in Canada.

A week after Ford reached a deal with Unifor, the Trump administration threatened an additional 50% tariff on many Canadian products. These tariffs took effect last Saturday after the two sides failed to reach an agreement, and Trump then vowed new measures on Monday—a 50% tariff on automobiles, trucks, auto parts, and steel imports starting January 1, 2027.

Canadian Prime Minister Mark Carney said in a statement released on August 22 that Canada will “respond in kind to these tariffs” and introduce additional measures in the coming days. He stated that retaliatory tariffs would take effect on September 8, without disclosing specific rates.