Workers at General Motors in Canada have authorized the addition of a new heavy-duty pickup to the company’s Ontario plant through a union agreement. The deal is expected to inject C$1.1 billion ($791.31 million) into Canada’s auto industry, which is currently strained by U.S. tariffs.
The deal also offered Canadian workers a 3% wage increase per year over three years.
According to its union, Unifor, GM intends to invest C$144 million in an Oshawa plant to produce the next-generation heavy-duty GMC Sierra truck. Additionally, it has committed not to sell or close its second assembly plant in Ingersoll, Ontario.
The C$1.1 billion investment includes a C$691 million commitment to support the production of new V8 engines in Ontario, previously announced in April.
Jack Uppal, GM Canada president, said in a statement: “The new agreements include meaningful improvements to wages, benefits and job security, and recognize the valuable contributions of our represented employees while helping sustain good-paying jobs that have long been a cornerstone of Canada’s automotive industry.”
GM and Unifor, representing 4,600 union members in Ontario, Canada’s most populous province, reached a tentative agreement last Saturday, ahead of today’s approval.
The deal comes as Canada’s auto industry faces 25% U.S. tariffs on vehicles, with President Donald Trump promising to raise them to 50% on January 1, 2027.
Approximately 17% of GM’s best-selling model, the Chevrolet Silverado pickup truck, is manufactured in Canada.
By CEO NA Editorial Staff
