The latest four-year labor agreement between General Motors and Canadian union Unifor means a lot of good things for GM Canada employees. Other than securing over $500 million in investments for the Oshawa and St. Catharine’s facilities, employees are in for a pay raise, too.
According to The Detroit Free Press, pay rates will rise two percent as of present, and again by two percent by 2019. That means a 68 cent raise for current assembly workers and an 81 cent raise for skilled-trades workers. The wage increase is the first in years for thousands of GM Canada workers.
Furthermore, new employees will receive a $6,000 signing bonus from General Motors, and members will receive $12,000 in bonus payments over the next four years.
It’s also good news for 700 temporary workers at the Canadian facilities.
GM agreed to bring on the 700 temp workers as full-time workers. However, those workers will be put on a defined contribution plan, rather than a traditional pension. The mandatory contribution will equal four percent from both the member and company to begin, with another one percent optional for employees. If an employee chooses to contribute another one percent, the automaker will provide another two percent.
Next on Unifor’s to-do list will be striking a deal with Fiat-Chrysler and Ford Motor Company. Unifor President Jerry Dias chose GM as the target automaker to set a precedent for negotiations with Ford and FCA.