Canadian Auto Union Says New Investment is Top Bargaining Goal

Canadian labor union Unifor says winning commitments from carmakers to hike their investments in the country will be its top priority when contract talks begin this summer.

But Unifor adds that other major objectives will be to improve wages for current workers and raise pay and benefit standards for new hires.

Unifor’s contracts with General Motors, Ford and Fiat Chrysler Automobiles will expire in September. Investments by the Big Three carmakers in their Canadian facilities have been meager compared with many other markets, threatening to further shrink Canada's vehicle manufacturing base.

Analysts note that Canada’s government has been relatively stingy in rolling out incentives to encourage investment by carmakers and suppliers. They also point out that U.S. carmakers could shift production of virtually any model they make in Canada to other facilities in the U.S. or Mexico.

Unifor was formed in 2013 when the Canadian Auto Workers union merged with Canada’s Communications, Energy and Paperworkers union. Unifor represents 310,000 workers in Canada, including 40,000 in the country’s auto industry.