General Motors avoid Canada strike with last-minute union deal

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Sharecast News | 20 Sep, 2016

Updated : 11:34

Canadian autoworkers have managed to secure an agreement with giant US manufacturer General Motors, which will see the firm begin a new four-year contract with its plants in Oshawa and St Catharine's, Ontario.

Unifor had provided an ultimatum to GM that if its members did not receive assurances about the prolonging of contracts, they would go to the picket line, starting from Tuesday.

President of the Union Jerry Dias said that the Detroit-based company had agreed to spend "hundreds of millions of dollars" in order to keep the plants open.

The "Big Three" of US carmakers, also including Ford and Fiat Chrysler as well as GM, had faced pressure from Unifor.

"The commitment to Oshawa is hundreds of millions of dollars, therefore our fear of a closure in 2019 is now over," Jerry Dias said.

GM confirmed that a deal had been reached, that would allow for "significant new product, technology and process investments" in the two Canadian plants.

"We will be working with government on potential support, and will provide further details on the investment at the appropriate time," the company said.

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