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GM to Move Work to Canada From Mexico in Labor Deal, Union Says

  • Agreement includes GM investment in Oshawa, St. Catharines
  • ‘Turns tide of what has transpired in the auto industry’
The headquarters building of General Motors Co. stands in Detroit.
Photographer: Jeff Kowalsky/Bloomberg
Updated on

Canada’s auto union reached a tentative agreement with General Motors Co. that the labor group says secures production, saves jobs and stems a wave of investment to cheaper locations such as Mexico.

GM will invest C$400 million ($300 million) to upgrade its flex line and build a new vehicle in Oshawa, Ontario, and C$120 million in its engine and transmission plant in St. Catharines, Ontario, according to a person familiar with the deal. The investment would render Oshawa the only plant in North America to build both trucks and cars, easing fears of potential closure in 2019, said Jerry Dias, president of Unifor. The agreement would also stabilize the future of St. Catharines by moving work from Mexico, he said.