Updated Oct 10, 2023 - Economy

Canadian auto workers halt strike after GM agrees to new labor contract

A gleaming office building

GM headquarters in Detroit. Photo: Joshua Lott/Getty Images

General Motors and the Canadian auto workers union reached a tentative labor agreement hours after workers launched a strike at three of the automaker's plants earlier on Tuesday, according to the union.

Why it matters: If ratified by the union's members, the tentative contract would head off one of the labor strikes against GM, which is also dealing with a historic UAW strike in the U.S.

  • Unifor — which represents hourly auto workers in Canada in addition to other private sector workers — said the new strike will be on hold to allow members to vote to adopt the agreement.
  • Unifor's strike against GM came after it reached a deal with Ford.

Driving the news: Unifor said the agreement covers almost 4,300 autoworkers.

  • "When faced with the shutdown of these key facilities General Motors had no choice but to get serious at the table and agree to the pattern," Unifor National President Lana Payne said in a statement.
  • The new contract includes wage increases, improvements to pension plans, retiree income support, additional paid holidays and a process for full-time temporary workers to become permanent employees.

The other side: After Unifor members launched the strike, GM said in a statement that it made a "record economic offer that recognizes the many contributions of our represented team members – past, present, and future" but "there are some final outstanding items to be resolved at the bargaining table."

Go deeper: UAW strike plays out like slow-motion car wreck for Detroit automakers

Editor's note: This story was updated with info on the tentative agreement GM reached with the union.

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