General Motors has agreed to invest $144 million in its Oshawa Assembly Plant to produce next-generation GMC heavy-duty trucks under a new collective agreement reached with Unifor on Aug. 22. The deal covers over 4,600 unionized workers across four Canadian facilities and includes wage increases, facility investment guarantees, and production commitments.
Oshawa Assembly Secured for Two-Shift Production
According to Unifor, the three-year collective agreement allocates $144 million to bring next-generation GMC Sierra heavy-duty truck production to the Oshawa Assembly Plant. Union officials stated that based on current customer demand and company volume forecasts, the Oshawa facility is expected to run on two shifts for the duration of the 2026 agreement. This follows the shelving of a third shift at the plant back in January.
To mitigate potential layoffs resulting from that previous shift reduction, the union negotiated what it described as a new innovative program tailored specifically for Oshawa workers. The agreement covers employees at the Oshawa site alongside those at the CAMI Assembly Plant in Ingersoll, the St. Catharines Propulsion Plant, and the Woodstock Parts Distribution Centre.
St. Catharines Plant Set for Transmission Expansion
The Detroit-based automaker also committed to a $215 million investment at the St. Catharines Propulsion Plant. According to Unifor, this funding will prepare the facility to assemble a next-generation transmission scheduled for launch in 2029. Union representatives noted that St. Catharines will serve as the single-source plant for this component, creating 250 new jobs.
CAMI Plant Protections and Defence Work Considerations
For the idled CAMI Assembly Plant in Ingersoll, General Motors provided a written pledge not to close or sell the facility while continuing to search for new program opportunities. Additionally, the CAMI plant will receive first consideration for Canadian Armed Forces defence work allocations if the federal government awards the manufacturing contract to GM.
Did You Know?
The new agreement spans four major Unifor-represented facilities in Ontario, encompassing more than 4,600 workers across vehicle assembly, propulsion manufacturing, and parts distribution operations.
Wage Increases and Bonus Structure
Beyond capital investments, the three-year contract delivers a 3 percent wage increase in each year of the agreement. Eligible members will also receive a $10,000 productivity bonus, alongside the introduction of a new December bonus.
Broader Auto Sector Headwinds
With ratification voting underway over the weekend, Unifor prepares to transition its labour negotiations toward Stellantis. These upcoming talks take place amid significant economic and political headwinds for the North American auto sector, including ongoing U.S. tariffs, the Trump administration’s decision not to extend the Canada-United States-Mexico Agreement, and the arrival of Chinese electric vehicles in the Canadian market.
Frequently Asked Questions
Which facilities are covered under the new Unifor and General Motors agreement?
The agreement covers more than 4,600 unionized employees at the Oshawa Assembly Plant, CAMI Assembly Plant in Ingersoll, St. Catharines Propulsion Plant, and Woodstock Parts Distribution Centre, according to Unifor.
What are the primary investments included in the deal?
General Motors is investing $144 million to add next-generation GMC Sierra heavy-duty truck production in Oshawa and $215 million in St. Catharines for next-generation transmission assembly starting in 2029.
What protection does the CAMI plant receive?
GM has pledged in writing not to close or sell the idled CAMI plant in Ingersoll while seeking new program opportunities, making it the first consideration for Canadian Armed Forces defence work if awarded by the government.
What wage and bonus terms were negotiated?
Workers will receive a 3 percent wage increase annually over the three-year term, a $10,000 productivity bonus for eligible members, and a new December bonus.
Stay Informed on Industry Developments
Explore more local stories and labor updates from CityNews Toronto. Share your thoughts on these manufacturing agreements in the comments below or subscribe to our newsletter for the latest updates.
Related reading