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 (GM) Inks 3-Year Deal With Unifor in Canada
Read MoreHide Full Article
General Motors Company (GM - Free Report) recently announced that its workers in Canada, represented by Unifor, have ratified a new three-year collective agreement between the union body and the company.
Key Takeaways from the Deal
Per the agreement, the Detroit auto biggie’s Oshawa plant in Ontario will be reopened to manufacture light and heavy-duty pick-up trucks. Reportedly, 85% of the 1,600 Unifor members at all three of the company’s Canadian sites — St. Catharines, Oshawa and Woodstock plants — have voted in favor of the agreement.
The deal encompasses General Motors’ investment to the tune of $1.3 billion, creating 1,700 jobs in the Oshawa plant. More than $109 million will be invested to facilitate V-8 engine and transmission production in St. Catharines. The contract will also ensure job security across all the three Canadian plants for the duration of the agreement, including at the Woodstock Parts Distribution Centre, which will also witness some major reforms and an investment of $500,000 in operations.
The Oshawa plant will resume production of both light and heavy-duty trucks in 2022, and St. Catharines will manufacture engines for those pick-ups.
In 2018, General Motors had announced the decision to halt production in Oshawa and several other facilities. This had led to major resentments in the United States and Canada. Since then the future of the Oshawa facility had been a major concern for the union and it commenced negotiations with General Motors this year. The union had previously reached a deal with the auto giant to keep the Oshawa facility open for producing aftermarket parts, employing about 300 workers there. The latest deal marks a major victory for the Unifor members in Canada.
This latest development will fortify General Motors’ foothold in Canada. Also, restarting pick-up production in Oshawa is encouraging for the company as the demand for pick-ups has been spurred by the coronavirus pandemic, accounting for more than 40% of its Canada sales. Thus, the deal will make the Oshawa plant an integral part of the automaker’s success story In Canada and fuel its long-term growth.
Unifor in a Win-Win Situation on Deals With Detroit 3
Unifor’s deal with General Motors marks the third consecutive win for the union body after it struck similar deals with Ford (F - Free Report) and Fiat Chrysler Automobiles . The agreements would entail a total investment of $ 5 billion by the Detroit Three automakers.
In September, Unifor entered into a deal with Ford involving the investment of $1.46 billion to introduce battery-powered electric vehicle production in its manufacturing facility in Oakville, Ontario, and a new engine derivative to Windsor, Ontario.
The Fiat Chrysler agreement reached in October includes more than $1.5 billion in investment in latest and innovative technologies to build both plug-in hybrid vehicles and battery-powered electric vehicles.
Though General Motors’ deal with Unifor did not pivot on electric vehicles, all three contracts include support from both the federal and the Ontario governments. Per the agreement, Unifor and General Motors will provide for other economic benefits of the workers like establishing an anti-racism action plan, setting up a new Racial Justice Advocate in the workplace and giving up to 10 paid days of domestic violence leave.
Notably, shares of General Motors have appreciated 12.2%, year to date, while the industry has surged 143.4%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
General Motors (GM) Inks 3-Year Deal With Unifor in Canada
General Motors Company (GM - Free Report) recently announced that its workers in Canada, represented by Unifor, have ratified a new three-year collective agreement between the union body and the company.
Key Takeaways from the Deal
Per the agreement, the Detroit auto biggie’s Oshawa plant in Ontario will be reopened to manufacture light and heavy-duty pick-up trucks. Reportedly, 85% of the 1,600 Unifor members at all three of the company’s Canadian sites — St. Catharines, Oshawa and Woodstock plants — have voted in favor of the agreement.
The deal encompasses General Motors’ investment to the tune of $1.3 billion, creating 1,700 jobs in the Oshawa plant. More than $109 million will be invested to facilitate V-8 engine and transmission production in St. Catharines. The contract will also ensure job security across all the three Canadian plants for the duration of the agreement, including at the Woodstock Parts Distribution Centre, which will also witness some major reforms and an investment of $500,000 in operations.
The Oshawa plant will resume production of both light and heavy-duty trucks in 2022, and St. Catharines will manufacture engines for those pick-ups.
In 2018, General Motors had announced the decision to halt production in Oshawa and several other facilities. This had led to major resentments in the United States and Canada. Since then the future of the Oshawa facility had been a major concern for the union and it commenced negotiations with General Motors this year. The union had previously reached a deal with the auto giant to keep the Oshawa facility open for producing aftermarket parts, employing about 300 workers there. The latest deal marks a major victory for the Unifor members in Canada.
This latest development will fortify General Motors’ foothold in Canada. Also, restarting pick-up production in Oshawa is encouraging for the company as the demand for pick-ups has been spurred by the coronavirus pandemic, accounting for more than 40% of its Canada sales. Thus, the deal will make the Oshawa plant an integral part of the automaker’s success story In Canada and fuel its long-term growth.
Unifor in a Win-Win Situation on Deals With Detroit 3
Unifor’s deal with General Motors marks the third consecutive win for the union body after it struck similar deals with Ford (F - Free Report) and Fiat Chrysler Automobiles . The agreements would entail a total investment of $ 5 billion by the Detroit Three automakers.
In September, Unifor entered into a deal with Ford involving the investment of $1.46 billion to introduce battery-powered electric vehicle production in its manufacturing facility in Oakville, Ontario, and a new engine derivative to Windsor, Ontario.
The Fiat Chrysler agreement reached in October includes more than $1.5 billion in investment in latest and innovative technologies to build both plug-in hybrid vehicles and battery-powered electric vehicles.
Though General Motors’ deal with Unifor did not pivot on electric vehicles, all three contracts include support from both the federal and the Ontario governments. Per the agreement, Unifor and General Motors will provide for other economic benefits of the workers like establishing an anti-racism action plan, setting up a new Racial Justice Advocate in the workplace and giving up to 10 paid days of domestic violence leave.
General Motors — peers of which include Ford and Harley-Davidson (HOG - Free Report) — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, shares of General Motors have appreciated 12.2%, year to date, while the industry has surged 143.4%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>