Unifor Case Study

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Automotive investors are on the edge of their seats awaiting the results from tonight’s automotive manufacturing union vote. The outcome will determine short-term production continuance and talks with other major Canadian automotive manufacturers.

General Motors (GM) has earmarked $554 million dollars for production at Canadian Unifor union staffed plants. The firm will invest the bulk of the funds in the Oshawa and St. Catherine’s facilities. Unifor reached this tentative agreement just short last Monday’s deadline. Union members are voting whether to accept the deal today. Although, the agreement has reached a vote, both sides made confessions. The voter is significant in that it will affect works at Fiat Chrysler and Ford if ratified, as these two manufacturers are next on Unifor’s agenda. (See also, General Motors Reaches Agreement With Canadian Labor Union)

General Motors will disperse the funds over the next four years. Agreement details are vague, pending union member review. 4,000 Canadian workers are voting on the agreement this evening. Unifor has leveraged NAFTA’s lackluster performance to in the automotive industry, winning several salary enhancements for union members. The Detroit automotive industry …show more content…

Union base pay will immediately increase by two-percent and then increase another two-percent in 2019. The union’s $34.15 wage cap will also progress slightly, with current employees receive prorated raises. Additionally, full-time workers hired after this ratification vote will participate in a new retirement plan, segregated from current pension holders. The saving plan will draw four-percent from employee salaries, with an option to increase that amount to five-percent. Employers will add an addition two-percent to retirement

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