After successfully ratifying a new three-year contract with Ford Motor on Sunday, Canadian union Unifor has identified General Motors as its next bargaining target in contract negotiations with the Detroit Three.
Unifor’s Pattern Agreement with Ford
In its contract discussions with the Detroit Three in Canada, Unifor initially selected Ford as its primary target for a pattern agreement. On Sunday, the union secured the approval of a new contract with Ford. This contract promises wage increases of up to 25% for approximately 5,600 workers at Ford’s Canadian facilities.
The union’s bargaining committees are now set to negotiate the pattern-setting agreement approved by Ford of Canada’s members. Additionally, they will address GM-specific issues during the second round of talks, Unifor stated. Negotiations with General Motors are scheduled to commence on Tuesday.
United States Negotiations and Presidential Involvement
In the United States, negotiators for the United Auto Workers (UAW) and Ford are continuing discussions, with the automaker acknowledging the existence of “significant gaps” on key economic issues. President Joe Biden, a Democrat, intends to visit a UAW picket line in Michigan on Tuesday. Biden lauded the UAW’s sacrifices in 2007, a critical period for the auto industry’s survival. He emphasized that the union played a pivotal role in saving the automobile industry and should now share in its resurgence.
Republican U.S. Senator Josh Hawley visited a UAW picket line outside a GM plant in Missouri on Monday, expressing support for better wages, benefits, and job security for American autoworkers.
Former Republican President Donald Trump is also expected to address auto-related topics in Michigan on Wednesday.
Unique Negotiations This Year
Traditionally, the UAW has chosen one U.S. automaker to focus on securing a contract deal that establishes a pattern for the other automakers. However, this year, the union has engaged in simultaneous negotiations with all three major automakers.
Ford emerged as the de facto lead company in these negotiations, following the union’s announcement on Friday that sufficient progress had been made at the No. 2 U.S. automaker. This progress helped avert further walkouts at the company.
Potential Supply Disruption from Strikes
Last Friday, the UAW initiated strikes at 38 GM and Stellantis parts distribution centers located in 20 U.S. states. These walkouts have the potential to disrupt the supply of repair parts to dealers and customers.
While the Canadian operations of the Detroit Three are notably smaller than their U.S. counterparts, each automaker maintains crucial factories in Canada.