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Daily Newsletter

11 October 2023

Daily Newsletter

11 October 2023

Union workers on strike at GM Canada

Halting key factories in Ontario

Graeme Roberts October 10 2023

Workers at General Motors’ Canadian plants are on strike, halting key factories in Ontario, after contract negotiations with the union representing about 4,300 employees failed to bring an agreement, Bloomberg reported.

The report said Unifor, the auto workers union in Canada, had been trying to get GM to match a three year deal it signed with Ford which includes wage increases, cost of living allowances and pension improvements. It had set a deadline of Monday (9 September 2023) at 11:59 pm Toronto time to get a deal.

Bloomberg noted the strike raises the pressure on GM which has already been dealing since mid September with US strikes by the United Auto Workers. The automaker gave an important concession last week, agreeing to bring battery plant employees into the UAW’s fold, helping to ease that union’s concerns about the transition to electric vehicles.

Thousands of US workers at some GM assembly plants and parts distribution centers remain off the job as the UAW seeks to emerge from its strike with a wage increase of at least 30%, sources told Bloomberg. GM has offered 20%, along with other sweeteners.

Unlike the UAW, which hit all three Detroit automakers at once with targeted shutdowns, the Canadian union decided to stick with the traditional “pattern bargaining” approach.

The Canadian talks cover workers at three GM facilities, including an assembly plant in Oshawa, Ontario, that produces Chevrolet Silverado pickup trucks and a powertrain plant in St. Catharines, Ontario, that serves factories in other countries, Bloomberg said.

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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