We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Motors Signs Union Deal; Ups Canadian Investments
Read MoreHide Full Article
General Motors Company (GM - Free Report) and Canada’s Unifor Union have signed a deal that the workers voted 64.7% to ratify, minutes before a strike deadline. The new 4-year contract will help the workers secure their future in a weakening auto sector in Canada and ensure an investment of about C$554 million, or $420.84 million by the company in its Canadian facilities.
General Motors will be investing a majority of the promised amount at the Oshawa and St. Catherines manufacturing plants in Ontario. The two plants are expected to receive C$400 million ($303.86 million) and C$150 ($113.95 million) million, respectively. Post investment, the Oshawa plant will be the company’s first facility in North America to manufacture both trucks and cars. On the other hand, the St. Catherines engine and transmission plant will be able to accommodate an engine production shift from Mexico to this plant. An investment in the parts distribution center at Woodstock is also expected.
Additionally, the deal includes a 2% wage hike for the workers immediately and another 2% in Sep 2019. The employees will also be paid a bonus of C$12,000 (over $9,100) over three years, half of which will be paid as a signing bonus. Moreover, improvements will be made to the New Hire program and 700 supplemental workforce employees will be converted to full time workers. However, the labor pensions are now less favorable as the union gave it up for new hires.
Unifor represents about 4,000 General Motors employees. This is the first agreement, this year, the union signed with the Detroit Three, which includes Fiat Chrysler Automobiles N.V. and Ford Motor Co. (F - Free Report) , and General Motors. The union represents roughly 16,000 employees of the other two automakers. The next negotiation for the union will be with Fiat Chrysler, for which the General Motor deal will act as a basis, before the tentative strike deadline of midnight of Oct 10.
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Motors Signs Union Deal; Ups Canadian Investments
General Motors Company (GM - Free Report) and Canada’s Unifor Union have signed a deal that the workers voted 64.7% to ratify, minutes before a strike deadline. The new 4-year contract will help the workers secure their future in a weakening auto sector in Canada and ensure an investment of about C$554 million, or $420.84 million by the company in its Canadian facilities.
General Motors will be investing a majority of the promised amount at the Oshawa and St. Catherines manufacturing plants in Ontario. The two plants are expected to receive C$400 million ($303.86 million) and C$150 ($113.95 million) million, respectively. Post investment, the Oshawa plant will be the company’s first facility in North America to manufacture both trucks and cars. On the other hand, the St. Catherines engine and transmission plant will be able to accommodate an engine production shift from Mexico to this plant. An investment in the parts distribution center at Woodstock is also expected.
Additionally, the deal includes a 2% wage hike for the workers immediately and another 2% in Sep 2019. The employees will also be paid a bonus of C$12,000 (over $9,100) over three years, half of which will be paid as a signing bonus. Moreover, improvements will be made to the New Hire program and 700 supplemental workforce employees will be converted to full time workers. However, the labor pensions are now less favorable as the union gave it up for new hires.
Unifor represents about 4,000 General Motors employees. This is the first agreement, this year, the union signed with the Detroit Three, which includes Fiat Chrysler Automobiles N.V. and Ford Motor Co. (F - Free Report) , and General Motors. The union represents roughly 16,000 employees of the other two automakers. The next negotiation for the union will be with Fiat Chrysler, for which the General Motor deal will act as a basis, before the tentative strike deadline of midnight of Oct 10.
GENERAL MOTORS Price
GENERAL MOTORS Price | GENERAL MOTORS Quote
Zacks Rank
General Motors currently carries a Zacks Rank #3 (Hold).
A better-ranked auto stock is Cooper-Standard Holdings Inc. (CPS - Free Report) . The company has witnessed positive estimate revisions in the last 60 days and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>