At its June 1 meeting, Unifor’s Auto Council, with elected representatives from every bargaining unit involved in this round of negotiations, voted unanimously to make new investments in Canada, including new product allocations, the top priority of the talks.
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Negotiations between the Canadian autoworkers union and the so-called Detroit Three automakers – General Motors, Ford and Fiat Chrysler – got underway Wednesday and it looks like a hard road to travel to get a deal. “So, guess what? We’re going to solidify the footprint”. The union will begin talks with Ford Motor Co. of Canada and Fiat Chrysler Automobiles (FCA) Canada on Thursday.
But David Paterson, GM Canada’s vice-president of corporate affairs, said any investment decision will have to take into account several factors beyond the labour agreement, including government policy, the macroeconomic situation and the company’s supply base.
Today we start the formal negotiations process with Unifor. We’re absolutely expecting they will do that in Canada.
We believe GM was not transparent with us seven years ago or four years ago, he added, referring to previous negotiations in which union bargainers had accepted tentative promises of new investment that never materialized.
Though both GM and Unifor said the talks began positively, their agendas are immediately at odds.
One challenge for Unifor in securing new vehicles for Oshawa is that GM already “locked up product” with the UAW, said Arthur Schwartz, president of Labor and Economics Associates, a consultancy.
“It’s important for this agreement to reflect that contribution while also ensuring we remain flexible, innovative and internationally competitive for future investments”, he added.
Using a hockey analogy, GM’s Paterson urged Unifor to stay at the table until an agreement is reached, even if “extra periods” are required to do so. “And we can’t have people leaving the ice if we’re going to win”, Paterson said, a not-so-subtle reference to strike action.
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The union will not name its target company – the one it negotiates with first in hopes of getting the best contract, which will then become a pattern for the other two automakers – until the Tuesday after Labour Day. “Our message will be: invest in Canada”. “This is about the future of the industry here in Canada, so I have nothing to lose”, Dias said in a statement.
