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Daily Newsletter

01 November 2023

Daily Newsletter

01 November 2023

Unifor, Stellantis reach ‘tentative’ agreement

Agreement with Stellantis follows pattern agreement Canadian union reached with Ford and GM

Dani Cole October 31 2023

Canada’s largest private sector union, Unifor, has announced it has reached a tentative agreement with Stellantis, ending strike action at the company’s Canadian facilities.

Unifor National President Lana Payne said: “I am proud of our members at every Stellantis facility for their quick and decisive action during this brief and effective strike action.

This agreement will considerably improve the living standards of every Unifor member at Stellantis.”

It covers 8,200 Unifor members at the Windsor Assembly Plant, Brampton Assembly Plant, Etobicoke Casting Plant and parts distribution centres in Mississauga and Red Deer.

The tentative agreement follows the pattern agreement the union reached with Ford Motor Company and General Motors, Unifor added.

Highlights of the pattern agreement include:

  • Base hourly wage increases of nearly 20% for production and 25% for Skilled Trades over the lifetime of agreement.
  • General wage increases in each year of the agreement with 10% in year one, 2% in year two and 3% in year three.
  • Improvements to all pension plans.
  • $10,000 Productivity and Quality bonus for full-time employees and $4,000 for Temporary Part Time.

Unifor Stellantis Master Bargaining Chair James Stewart said: “Our members and our bargaining team stood firm in our resolve to reach a strong agreement that follows the union’s core economic pattern and all of the issues specific to our individual Stellantis facilities.

The agreement puts in place all the elements of our pattern agreement, the protections autoworkers need throughout the EV transition, and next-generation products our members will build for years to come.”

The Unifor agreements in Canada come as the US UAW labour union struck tentative agreements with the Detroit 3 over the past week (the last of which was struck with General Motors).

High upfront costs could be detrimental towards the growth of the off-highway EV market

The global off-highway electric market is expected to grow at a CAGR of 17.4% by 2030, per GlobalData. Despite the strong growth, high upfront costs may pose a challenge. Due to the high capacity of these vehicles, they consume large amounts of power from a number of battery packs installed on the vehicle, whose high cost in turn adds to the cost of the vehicle, thereby increasing the initial cost. However, governments worldwide are offering subsidies and tax exemptions in order to help customers to counter the initial purchase cost.

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