Unifor's 'expectations are very high' as contract talks with Detroit 3 start

Unifor opened contract talks with Ford, General Motors and Stellantis in Toronto Aug. 10, as both sides grapple with the transition to electric vehicles and the rising cost of living for workers throughout Canada. 

Official handshakes between union President Lana Payne and top company negotiators were followed by short closed-door meetings with each of the automakers, as the employers got first looks at thick binders comprised of union bargaining proposals. 

“I made it very clear to the companies today that our members’ expectations are very high,” Payne told reporters at a press conference following the sit-downs.

“And for good reason. Profits are up and so is the cost of living.” 

The talks follow a volatile three years under the previous collective agreement, which saw major disruptions tied to the pandemic and microchip shortage, as well as an 18-month stretch of big-ticket investments in new and existing Detroit Three plants in Canada. 

They also come amid a period of high profitability for automakers, including Ford, GM and Stellantis. 

Payne said improved wages and pensions, support during assembly plant transitions to EVs and further details about promised investments “must be addressed” in any contract the union entertains. She refused to lay out specific union proposals, but said Unifor will be demanding “substantial wage improvements” that “reflect the affordability crisis, as well as the extraordinary profits that the companies are making.”

On compensation, the automakers showed early willingness to engage. 

Jacqueline Oliva, head of human resources and lead negotiator for Stellantis Canada, said cost competitiveness will remain important for the company, but Stellantis is looking to recognize staff. 

“We really do want to reward our employees through compensation and benefits through their wages,” she said following the company’s meeting with Unifor. 

Jennifer Wright, executive director of communications at GM Canada, said the automaker comes to the table with plans to do “what’s right” by its employees.

“We recognize that they make huge contributions to the success of our business, and we want to reward them for our success. We also need to be competitive and make sure that we’re doing the right thing by our customers and by our business.”

Wright added that much has changed in the Canadian automotive industry since the last round of talks in 2020, and GM Canada’s and Unifor’s goals for the continued growth of Canada’s auto sector are aligned. 

Likewise, Steven Majer, vice-president of human resources at Ford of Canada, said during the contract talks the company is looking to create a blueprint for the Canadian auto sector in the EV era. 

“We approach the process with a common goal — a vibrant and sustainable future for our employees, our customers, and our communities,” he said in a release. 

Despite the common ground, Payne said she expects “tough negotiations” with each of the automakers, as the union works to secure three-year collective agreements for nearly 20,000 hourly workers at Detroit Three assembly and powertrain plants across Ontario.

Unifor’s existing contracts with the three employers expires Sept. 18, four days after those of the United Auto Workers, which represents hourly staff at Detroit Three plants in the United States. 

The overlapping talks on both sides of the border add an extra element to this year’s negotiations, as the two unions enter bargaining with a long list of demands. 

The UAW has taken a more adversarial approach to discussions, scrapping the traditional handshake ceremonies with automaker executives and referring to the talks as a “war.” 

Most recently on Aug. 8, union President Shawn Fain called early bargaining proposals from Stellantis a "slap in the face" to members, before throwing a copy of the document in a trash can during a livestream. 

Payne, on the other hand, has not shied away from engaging directly with the employers. Along with the handshake ceremonies Aug. 10, she recently toured Stellantis’ Brampton Assembly Plant alongside Mark Stewart, the company’s COO for North America. 

But she is not writing off taking a harder line. Asked whether she expects to be dropping company proposals in wastepaper baskets in the weeks ahead, Payne said she will respond based on what the employers bring to the table.

“We haven’t received anything from Stellantis yet. So, stayed tuned, and we’ll see what that looks like.”