Community Update – Unifor Contract Negotiations
2016-08-10
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There has been a lot of public comment about Unifor auto contract negotiations that open this week, particularly regarding their importance for future investments in Canadian auto manufacturing. Here’s why I am taking a hopeful perspective on these talks.
First, these negotiations are an important first hurdle that can send a positive message. As we have underscored for the past two years, GM won’t make any future product decisions for Oshawa Assembly until after these negotiations. In Canada, we are extremely proud of the experience, quality and productivity of our workforce as we work together to deliver excellent vehicles for our customers. It’s important for this agreement to reflect that contribution while also ensuring we remain flexible, innovative and internationally competitive for future investments.
“If we are to sail upwind, we
need to all be working together.
This agreement can signal that.”
– Steve Carlisle
Second, we need to keep in mind that auto investment decisions are never made without examining a wide range of factors. That includes shifting market trends, macro-economic factors, capacity utilization across all our facilities, local costs for utilities, materials, supplier inputs, public policy supports and costs and much more. While labour costs account for about 7 per cent of our total costs, crafting a positive labour agreement can signal that we wish to put our best foot forward and “stay in the game”. GM has invested well over $3 billion in our Canadian operations since 2009 – most recently with an $800-million investment in our Ingersoll plant. It is no secret that Canada’s manufacturing sector has been buffeted by strong headwinds. If we are to sail upwind, we need to all be working together. This agreement can signal that.
And finally, GM is demonstrating its intent to be the auto industry leader in Canada as the global industry faces the largest disruption and technological transformation in more than 100 years. We believe the future of the auto industry will be electric, connected, autonomous and shared. Managing through disruption and change is the new reality – but it’s also an opportunity. In June, GM Canada was selected to be a new centre for 1,000 GM engineering and software jobs. We will be coding the future of our vehicles and our industry with new partners in Canada’s universities, start-ups, accelerators and others. In Oshawa alone, we now have the Canadian industry’s largest auto technology centre and a further 1,100 OnStar and Customer Care positions. This growing base of jobs came from building on our strengths and focusing on positive outcomes. We have shown that we can succeed by working together.
The weeks and months ahead will be about working together to find solutions. That’s the perspective GM Canada will take into our contract discussions with Unifor.
Steve
Steve Carlisle
President and Managing Director
General Motors of Canada