GM Canada Labor Agreement Secures Sierra HD Production

GM Canada Labor Agreement Secures New Product Allocations

On August 30, Unifor announced that its members had ratified agreements securing wage increases, stronger job protections, pension improvements, and new product allocations in Canada. The agreement includes plans for the next-generation GMC Sierra HD heavy-duty pickup to be produced at the Oshawa Car Assembly plant. During negotiations, GM said it would spend CAD 144 million to add the next-generation heavy-duty GMC Sierra truck to the Oshawa facility. The agreement also reaffirms a previously announced commitment to invest CAD 691 million for new V8 engine production in Canada, strengthening the manufacturing outlook for GM operations in Ontario.

CAD 1.1 Billion Investment Planned Across Ontario

Under the agreement, GM will invest a total of CAD 1.1 billion over the length of the contract. The investment includes CAD 144 million for the next-generation heavy-duty GMC Sierra at Oshawa and CAD 691 million for new V8 engine production. GM will also invest CAD 215 million to assemble a new-generation transmission at its St. Catharines plant, with production scheduled to begin in late 2029. These commitments provide additional long-term production allocations for Canada while maintaining manufacturing activity across multiple Ontario facilities covered by the labor agreements.

Workers Receive Wage and Benefit Improvements

Similar to the agreement reached with Ford in July, the GM contract provides workers with a 3% wage increase in each year of the contract. The agreement also includes improved job security, higher pension benefits, and other benefit enhancements for covered employees. The terms apply across the facilities represented under the negotiated agreements, providing workers with financial improvements while also establishing longer-term commitments around vehicle, engine, transmission, and parts production. The ratification gives the agreements formal approval from union members and establishes the framework for employment conditions during the contract period.

CAMI Assembly Remains Idled but Could Gain Future Work

GM Canada has also agreed not to sell the currently idled CAMI Assembly plant in Ingersoll, Ontario. The facility has been closed since October 2025, following the discontinuation of BrightDrop electric commercial van production there. Instead of selling the plant, GM Canada will continue reviewing potential opportunities for the facility. One possible path could involve GM Defense work at CAMI Assembly if the Government of Canada approves a Canadian Armed Forces contract. The potential allocation would provide an opportunity to repurpose the facility for future production activity if the proposed defense work receives government approval.

Two Separate Agreements Cover Ontario Facilities

The negotiations resulted in two separate agreements covering different groups of employees and facilities. One agreement applies to members employed at the Oshawa Assembly Plant, the St. Catharines Propulsion Plant, and the Woodstock Parts Distribution Centre. A separate contract covers employees working at the CAMI Assembly Plant. Together, the agreements establish wage, pension, benefit, job security, and product allocation provisions across the affected operations. The commitments also connect the labor agreements with longer-term manufacturing plans, including next-generation vehicle production at Oshawa, new V8 engine investment, and future transmission assembly in Ontario.

Frequently Asked Questions

What does the GM Canada labor agreement include?
The GM Canada labor agreement includes annual wage increases, improved job security, higher pensions and other benefits, along with commitments for new product allocations and manufacturing investments across Ontario facilities. GM plans to invest CAD 1.1 billion over the contract period, including funding for the next-generation GMC Sierra HD at Oshawa, new V8 engine production, and a next-generation transmission program at the St. Catharines plant. The agreement also keeps CAMI Assembly in Ingersoll under GM ownership while the company evaluates potential future opportunities for the facility.