With Plants at Stake, Unifor Prepares to Plunge Into Detroit Three Negotiations

Steph Willems
by Steph Willems

Canadian auto manufacturing has steadily declined over the past several decades, and the future looks cloudy for workers at Detroit Three plants. It’s under this gathering gloom that the union representing these workers, Unifor, enters into contract negotiations with General Motors, Ford, and Fiat Chrysler.

The last round of collective bargaining was rough, but the near-closure of GM’s Oshawa Assembly (where auto production ceased last year) provided Unifor with a grim portent of what could await other underutilized Canuck plants.

Formal contract talks begin August 12th, Unifor said Friday.

“These are significant negotiations at a time when the auto sector needs new investment to rebuild our economy with more Made in Canada manufacturing,” said Unifor National President Jerry Dias in a release. “Our union is committed to negotiating a solid agreement that makes progress on wages and working conditions for our members.”

Journos won’t be in attendance for these physically-distanced talks as both sides attempt to avoid the spread of coronavirus.

With nearly 20,000 workers to back, Unifor needs commitment that plants like Ford’s Oakville Assembly and FCA’s Brampton Assembly will soldier on with new vehicles after the current product dries up. And there’s definite fear that they won’t.

Earlier this year, it was reported that Ford plans to ditch the Edge and Lincoln Nautilus, both built in Oakville, Ontario, to provide some room in the center of its crowded utility lineup. Brampton houses the ancient full-size LX-platform cars, two of which are due for a revamp in the near future. The Chrysler 300 is not expected to see a new generation.

Meanwhile, FCA’s Windsor minivan plant remains committed solely to a rapidly shrinking segment.

Unifor, who, in early 2019, boycotted the Mexican-built Chevrolet Blazer, has long been critical of Detroit’s preference for choosing low-cost manufacturing south of the Rio Grande over more expensive Canadian builds. While the new trade pact between the U.S., Mexico, and Canada includes a Mexican wage increase plank aimed at narrowing the cost gap, choosing south over north is still a thriftier option.

Exactly how the coronavirus pandemic will factor into the negotiations — and the thinking of Detroit execs — remains to be seen. Ford recently saw its flow of truck engines from Mexico stemmed on account of local anti-virus measures.

[Image: Fiat Chrysler Automobiles]

Steph Willems
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  • Lou_BC Lou_BC on Aug 07, 2020

    The 1965 AutoPact meant that a certain amount of auto's had to be made in Canada if a manufacturer wanted to sell in Canada. NAFTA removed such restrictions. Even with the new USMCS/CUSMA rules forcing higher wages for Mexican labour, there still remains a significant cost savings in Mexico. Canada needs to pull their heads out of the USA's ass and realize that "we" need to seek trade deals with similar sized economies like countries in the EU. The USA and China are going to butt heads on many fronts in the next 20 years and being aligned with "3rd parties" is a safe option.

    • Arthur Dailey Arthur Dailey on Aug 08, 2020

      Both John Diefenbaker and Pierre Trudeau sought this 'third option'. Diefenbaker believe that the Commonwealth would balance out the USA, but the UK was more interested in joining the EU. Trudeau wanted to link with the EU bought they have a large market that is geographically close and do not need to export across the Atlantic to Canada's small market. More recently we have looked at a TransPacific economic group. But do you really want to 'cosy up' to China? What the Canadian government should have done was instead of loaning money to GM and Chrysler was to buy controlling interest in Chrysler. Then sell shares to Canadians while retaining voting control. Create an auto manufacturer which is controlled/protected/favoured/subsidized by the government. This has worked to various degrees in Germany, Japan, China, Korea and to lesser degrees in France and Italy. It did not work out as well in the UK or Sweden. Canadian Chrysler could then have entered into agreements regarding technology or manufacturing rights with some of the auto manufacturers who did not have a presence in North America.

  • Anomaly149 Anomaly149 on Aug 09, 2020

    I'm not buying Ford ditching Oakville, there's no other plant currently ready to accept two CD4 SUVs, and that's an actually money making market. Now, I wouldn't mind it, but the leak smells like early contract posturing. (What're they gonna do, resurrect Wayne Assembly?) Windsor and Essex, however?

  • Akear Does anyone care how the world's sixth largest carmaker conducts business. Just a quarter century ago GM was the world's top carmaker. [list=1][*]Toyota Group: Sold 10.8 million vehicles, with a growth rate of 4.6%.[/*][*]Volkswagen Group: Achieved 8.8 million sales, growing sharply in America (+16.6%) and Europe (+20.3%).[/*][*]Hyundai-Kia: Reported 7.1 million sales, with surges in America (+7.9%) and Asia (+6.3%).[/*][*]Renault Nissan Alliance: Accumulated 6.9 million sales, balancing struggles in Asia and Africa with growth in the Americas and Europe.[/*][*]Stellantis: Maintained the fifth position with 6.5 million sales, despite substantial losses in Asia.[/*][*]General Motors, Honda Motor, and Ford followed closely with 6.2 million, 4.1 million, and 3.9 million sales, respectively.[/*][/list=1]
  • THX1136 A Mr. J. Sangburg, professional manicurist, rust repairer and 3 times survivor is hoping to get in on the bottom level of this magnificent property. He has designs to open a tea shop and used auto parts store in the facility as soon as there is affordable space available. He has stated, for the record, "You ain't seen anything yet and you probably won't." Always one for understatement, Mr. Sangburg hasn't been forthcoming with any more information at this time. You can follow the any further developments @GotItFiguredOut.net.
  • TheEndlessEnigma And yet government continues to grow....
  • TheEndlessEnigma Not only do I not care about the move, I do not care about GM....gm...or whatever it calls itself.
  • Redapple2 As stated above, gm now is not the GM of old. They say it themselves without realizing it. New logo: GM > gm. As much as I dislike my benefactor (gm spent ~ $200,000 on my BS and MS) I try to be fair, a smart business makes timely decisions based on the reality of the current (and future estimates) situation. The move is a good one.
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