Unifor Secures Tentative Deal with Stellantis, Marking the Conclusion of Successful Bargaining Round

Unifor Reaches Tentative Deal with Stellantis, Wrapping Up Contract Negotiations with Detroit Three Automakers

Toronto – Unifor, the largest private sector union in Canada, has reached a tentative deal with Stellantis, the automaker behind well-known brands such as Fiat, Chrysler, Dodge, and Jeep. This agreement comes after a brief strike on Monday and sets the stage for Unifor to wrap up its contract negotiations with the Detroit Three automakers. The final deal still needs to be voted on by union members.

Positive Developments on Both Sides of the Border

This deal comes at a time when U.S. autoworkers are also reported to have deals in place with all three automakers, namely Ford, Stellantis, and General Motors. These agreements signal the end of rounds of bargaining that have resulted in substantial wage gains for workers on both sides of the border. The United Auto Workers union in the U.S. has tentative deals in place with all three automakers, potentially bringing an end to six weeks of strikes that have also impacted Canada’s parts supply sector.

Unifor‘s deal with Stellantis follows the same pattern agreement that has already been reached with Ford and General Motors. It includes significant economic benefits such as a nearly 20% increase in base hourly wages for production workers and a 25% increase for skilled trades over the three-year agreement. The pattern agreement also includes improvements to pension plans and the addition of two new paid holidays, among other enhancements.

Ensuring a Fair Deal for Stellantis Workers

It remains to be seen whether this deal is considered satisfactory by Stellantis workers. Ahead of bargaining, members of Local 444 in Windsor expressed concerns about the contract template set by Ford and General Motors, stating that it wasn’t good enough. However, Local 444 President Dave Cassidy announced on Monday that he was “very happy to bring back the deal” to members, indicating that he believes it meets their expectations.

The agreement with Stellantis covers workers at assembly plants in Windsor and Brampton, a casting plant in Toronto, and parts distribution centers in Mississauga and Red Deer. The tentative deal is seen as a positive outcome by suppliers, who have experienced anxiety due to the work stoppage strategy employed by the UAW in the U.S. There were concerns that this tactic could also disrupt Canadian operations and impact the workforce. However, the agreement reached with Stellantis has alleviated those fears.

Implications for the Auto Sector

The wage gains secured through these negotiations, particularly in the U.S., where they make up for past concessions, are expected to have ripple effects across the auto sector. Sam Fiorani, Vice President of Global Vehicle Forecasting at AutoForecast Solutions, believes that the higher pay rates could incentivize non-unionized factories to raise wages as well, giving unions on both sides of the border the opportunity to organize new members. It is worth noting that these pressures could have a bigger impact on smaller suppliers due to their more fragile finances.

Overall, the negotiations with parts suppliers in Canada have been relatively smooth with limited disruption. This is in contrast to the adversarial approach taken by the UAW in the U.S. According to Flavio Volpe, head of the Automotive Parts Manufacturers’ Association, this positive outcome can be attributed, in part, to the collaborative efforts at the Canadian Automotive Partnership Council, where unions and industry representatives work together to address pressing issues and foster better relationships.

With the tentative deal in place, it is expected that the agreement will be ratified by union members, leading to stable operations, higher wages, and long-term benefits for Stellantis employees. The conclusion of these contract negotiations is a positive development for the Canadian auto sector, providing stability and laying the groundwork for growth in the coming years.