General Motors has reached a preliminary deal with nearly 4,300 Canadian autoworkers shortly after their union began a national strike.
The Canadian union Unifor said on Tuesday, October 11, afternoon the “strike actions are on hold to allow the membership to vote on the tentative agreement.”
It must receive majority support from workers for ratification.
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Unifor had initiated the strike after GM and the union failed to reach an agreement by the 11:59 p.m. Monday, October 9, deadline.
The strike briefly impacted multiple facilities, including an assembly plant responsible for Chevrolet Silverado trucks.
It also affected engine production for vehicles like the Chevrolet Equinox and GM’s full-size SUVs, a stamping facility, and a parts distribution center.
Unifor President Lana Payne said: “When faced with the shutdown of these key facilities General Motors had no choice but to get serious at the table and agree to the pattern.”
Read More: Ford Autoworkers In Canada Secure 15 Percent Pay Raise
The Canadian engine plant was a major concern for GM, which has been hit with strikes in the US by United Auto Workers.
The factory produces engines for highly profitable full-size pickup trucks and SUVs.
GM released a statement confirming the tentative agreement, which it called “record.”
The deal, subject to member ratification, includes substantial pay raises, improved benefits, and better job security.
It builds on GM’s previous investments in Canadian manufacturing.
Read More: UAW Holds Off Strike As Talks Progress With Detroit Automakers
Unifor said the tentative GM agreement follows a ratified deal reached with Ford Motor last month.
It covers over 5,600 workers at Ford facilities in Canada.
The three-year GM agreement, similar to the Ford deal, includes hourly wage increases of up to 25 percent.
It also provides a reinstated cost-of-living allowance to combat inflation and a shorter progression for workers to reach top pay, among other benefits.
Both parties had been conflicting with making temp workers permanent, pension funding, and other demands.
Payne said all temporary workers will become permanent by the end of the three-year agreement.
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GM didn’t disclose the agreement’s details before the union ratification vote.
If ratified, Unifor will proceed to negotiations with Stellantis, the parent company of Chrysler, which has a significant presence in Ontario, Canada.
Unifor, representing 18,000 Canadian autoworkers at Detroit automakers, has sought a more traditional negotiation approach.
It negotiated separately with each automaker and used one deal as a “pattern” for others.
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This differs from the UAW’s strategy, which involves simultaneously bargaining with all three automakers.
The UAW, in contrast, has been gradually increasing targeted “stand-up” strikes since the tentative agreements were not reached by September 14.
It affects only a portion of its members instead of staging a national walkout.
Approximately 17 percent of UAW members covered by expired contracts are on strike.
