GM invests $144M to bring next-gen trucks back to Oshawa under new union deal

The deal aims to reduce layoffs at Oshawa after a third shift was eliminated in January, and creates 250 new jobs at St. Catharines.
Two shifts, new trucks, 250 jobs promised—but forecasts can shift
The Oshawa plant's future depends on customer demand holding steady through 2026, while St. Catharines gains new transmission work starting in 2029.
Mark

So this deal keeps the Oshawa plant running at two shifts. What does that actually mean for the workers who lost the third shift back in January?

Mimi

The union negotiated what they call an innovative program to reduce layoffs after that third shift was cut. Two shifts means the plant stays active, and now they're getting next-gen truck production, which should stabilize employment through 2026.

Luke

But we should be clear—the agreement says the plant is "expected" to operate on two shifts based on current demand forecasts. That's a forecast, not a guarantee. If demand drops, what happens then?

Mark

Fair point. What about the St. Catharines investment? That sounds more concrete.

Mimi

It is. Two hundred fifty new jobs, and GM is making St. Catharines the single global source for the next-generation transmission. That's real commitment—they're not spreading that work around.

Luke

Starting in 2029, though. That's three years away. A lot can change in the auto sector in three years.

Mark

And the CAMI plant—the one that's been sitting idle. What's the actual commitment there?

Mimi

GM promised in writing not to sell or close it while they look for new programs. And if the government awards GM a Canadian Armed Forces defence contract, CAMI gets first consideration.

Luke

That's a conditional promise. It depends on GM finding work for the plant and on the government awarding them defence contracts. Neither is guaranteed.

Mark

So the real wins here are the wage increases and the truck production coming to Oshawa?

Mimi

Three per cent annually, plus a $10,000 productivity bonus and a new December bonus. And yes, the truck production is the anchor—it's what keeps Oshawa viable.

Luke

All of this is happening while the sector is under real pressure from tariffs and Chinese EVs entering the market. This deal is good, but it's also a deal made in uncertain times.

  • The elimination of Oshawa's third shift in January had placed thousands of jobs in quiet jeopardy, making this negotiation a race against further erosion.
  • U.S. tariffs, the unresolved future of CUSMA, and Chinese EV competition have created a volatile backdrop that gives every clause in this deal outsized weight.
  • GM's $144M Oshawa investment and $215M St. Catharines commitment signal an attempt to stabilize Canadian operations rather than quietly withdraw from them.
  • The written pledge not to close or sell the idled CAMI plant in Ingersoll is an unusual concession — a contractual stay of execution for a facility without a confirmed future.
  • With 250 new St. Catharines jobs and annual wage increases secured, Unifor is now turning toward Stellantis negotiations, hoping this deal sets the floor for the sector.

In a moment when the Canadian auto industry faces mounting pressure from trade uncertainty and shifting markets, General Motors and Unifor have reached a three-year agreement that anchors more than 4,600 workers to four facilities across Ontario. The deal — centred on a $144 million commitment to bring next-generation Sierra heavy-duty truck production to Oshawa — reflects the enduring negotiation between industrial capital and organized labour over who bears the cost of economic disruption. Beyond wages and bonuses, the agreement offers something rarer: written assurances that idled plants will not be abandoned, and that workers will be considered first when new opportunities arise.

General Motors and Unifor finalized a three-year collective agreement on August 22, covering more than 4,600 unionized workers across Oshawa, Ingersoll, St. Catharines, and Woodstock. Details emerged as ratification votes got underway over the weekend.

The agreement's centrepiece is a $144 million GM investment to bring next-generation GMC Sierra heavy-duty truck production to the Oshawa Assembly Plant, which will run on two shifts for the contract's duration. The commitment is a partial recovery from January, when the company cut a third shift — a move that had cast a shadow over hundreds of jobs. Unifor negotiated additional protections designed to limit layoffs at the plant during the agreement's term.

In St. Catharines, GM is investing $215 million to make the Propulsion Plant the sole global source for a next-generation transmission, with production beginning in 2029 and 250 new positions created. The idled CAMI plant in Ingersoll received a different kind of protection: a written commitment from GM not to close or sell the facility, and a pledge to prioritize it for any Canadian Armed Forces defence contract the company might win.

On pay, workers will see three per cent annual wage increases across all three years, a $10,000 productivity bonus for eligible members, and a newly added December bonus.

The deal lands against a difficult backdrop — U.S. tariffs, an uncertain CUSMA renewal, and growing Chinese EV competition have all unsettled the Canadian auto sector. With this agreement in hand, Unifor is now preparing to enter negotiations with Stellantis, carrying the terms of the GM deal as a benchmark for what the industry should be willing to guarantee its workers.

General Motors and Unifor reached a three-year collective agreement on August 22, with details released as workers began the ratification process over the weekend. The deal covers more than 4,600 unionized employees across four Canadian facilities: the Oshawa Assembly Plant, CAMI Assembly in Ingersoll, the St. Catharines Propulsion Plant, and the Woodstock Parts Distribution Centre.

At the heart of the agreement is a $144 million investment by GM to bring production of the next-generation GMC Sierra heavy-duty trucks to Oshawa. The plant will operate on two shifts for the duration of the agreement, based on current customer demand and company volume forecasts. This commitment arrives after the company shelved a third shift at the facility in January, a move that had threatened significant job losses. The union negotiated what it describes as an innovative program designed to reduce layoffs in Oshawa during the agreement's term.

The investment extends beyond Oshawa. GM is committing $215 million to the St. Catharines Propulsion Plant for assembly of the next-generation transmission, with production scheduled to begin in 2029. The company has designated St. Catharines as the single-source facility for this transmission globally, a designation that will create 250 new jobs at the plant.

The CAMI Assembly Plant in Ingersoll, which has been idled, figures prominently in the agreement's protections. GM has pledged in writing not to close or sell the facility while it continues searching for new production opportunities. Additionally, if General Motors is awarded a contract for Canadian Armed Forces defence work by the government of Canada, the CAMI plant will receive first consideration for that allocation.

On compensation, the agreement provides three per cent wage increases in each year of the contract. Eligible members will receive a $10,000 productivity bonus, and a new December bonus has been added to the package. These terms represent the union's effort to secure not just job preservation but tangible gains for its membership across the four facilities.

The agreement comes as the Canadian auto sector faces significant headwinds. U.S. tariffs, the Trump administration's decision not to extend the Canada-United States-Mexico Agreement, and the entry of Chinese electric vehicles into the Canadian market have all created uncertainty for manufacturers and workers alike. Unifor is now preparing to move into labour negotiations with Stellantis, another major automaker with Canadian operations, as the union works to secure similar protections across the sector.

Oshawa Assembly is expected to operate on two shifts for the duration of the 2026 Collective Agreement, based on current customer demand and company volume forecasts
— Unifor union officials
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