Autoworkers prepared to strike, Unifor says, as bargaining begins with Detroit 3

Unifor National president Lana Payne had strong words for the Detroit Three automakers Thursday afternoon as talks officially opened to negotiate a new collective agreement for workers. 

"I made it very clear to the companies today that our members' expectations are very high," Payne told reporters at a press conference after delivering open offers to Ford, Stellantis and General Motors in Toronto. 

"Workers have shown time and time again they are prepared to fight and to strike if necessary to have their demands met.

"This is the moment we are in and no one, no one  should underestimate it."

The union kicked off bargaining with the three companies today with key priorities: pensions, wages, transition security and securing investments. 

Payne said it was the first time in years the union entered bargaining "without storm clouds hanging over our plants."

But, she added, the "once-in-a-century" transition to EVs was causing anxiety among members for their job security, noting as many as a third of Unifor workers could be vulnerable in the move to electric vehicles. 

Ford a likely target as Unifor seeks three-year agreement

Other key issues in bargaining include the recruitment challenges for skilled trades workers, mental health supports, health and safety and contract disparities that exist for workers before and after the 2012 negotiations. 

The company will be seeking a three year agreement, Payne said. 

And while the target won't formally be announced until further along in the bargaining process — traditionally around Labour Day — Payne said the union is likely to choose Ford Motor Company. 

Payne said that's because Ford has been "forthcoming" and willing to work with Unifor in the EV transition process. Ford was the union's target in 2020. 

"I'm stating this only to let you know and our members know where my head is at right now," Payne said. "Of course there is still plenty of time and our thought process might change."

In its statement, Ford said it had "important work to do together [with Unifor] as we create a blueprint for the Canadian automotive industry."

"We approach the process with a common goal – a vibrant and sustainable future for our employees, our customers, and our communities. Both parties bring an incredible amount of knowledge, creativity, and respect to the table, and we are ready and willing to work together to find innovative solutions."

The union will be holding its customary strike votes on Aug. 26 and 27, Payne said, "in the hopes members will give us the mandate we need to take strike action if necessary."

As for the question of what kind of wage increases the union will be seeking, Payne said they would be "substantial" but said details would be kept to the bargaining process.  

Retirees say pensions are top of mind during negotiations 

At a rally downtown Thursday morning, auto retirees were asking for pension improvements they say are long overdue as inflation climbs and companies make huge profits. 

Bob Nickerson is a retired labour leader, and former national secretary-treasurer of the Canadian Auto Workers (CAW).

"Retirees were, in the early days, fighting for pensions in the plant, the wages and the benefits," said Bob Nickerson, former national secretary-treasurer of the Canadian Auto Workers (CAW).

"You guys did all the work for the guys coming behind us … and we took care of the people coming up behind us. We're taking care of ourselves."

UAW and Unifor negotiations separate, Payne says

Payne drew a contrast to the tactics of the United Auto Workers and her counterpart in the United States, Shawn Fain, who this week literally threw an offer from Stellantis in the trash and has said openly the union will be seeking a whopping 46 per cent wage increase. 

"For us we have our own job to do, our different collective agreements. We have different things we want to achieve," Payne said, adding that some priorities are similar. 

"And we wish them well, we want them to do well by their members the same way I'm sure they wish us well here in Canada."

Union leadership from both sides of the border met in Windsor last week for a "summit" ahead of the start of bargaining. 

Employer cites investments at beginning of bargaining

The Detroit Three automakers released statements signalling the opening of negotiations. 

General Motors said their negotiations will cover about 4,200 workers in Oshawa, St. Catharines and Woodstock. 

"We look forward to working with our Unifor partners to build a competitive future that also recognizes our employees' contributions to our shared success," the company said. 

In its statement, Stellantis said it had invested more than $8.6 billion in Canada in the last 18 months that would create more than 3,000 jobs. 

"Collectively, our focus will be on negotiating an agreement that will ensure our future competitiveness in today's rapidly changing global market, with good benefits and wage increases that reward the contributions of our represented workforce now and for generations to come," the statement said. 

"During negotiations, both parties must continue to work together and find creative solutions that meet the needs of today's workforce while maintaining efficient and productive workplaces."

What you need to know as bargaining begins

The are more than 19,600 Unifor members unionized at the Detroit Three across Canada. The largest share of those members work for Stellantis, both at the Windsor Assembly plant, which has 4,500 members and at the Brampton Assembly plant with 3,200 members, according to Unifor figures.

Unifor's Auto Council, comprised of union leadership from different companies and workplaces, will spearhead negotiations from the union's side.

The companies engage in what's known as pattern bargaining: essentially, with a few small exceptions, the deal that one company reaches will be replicated by the other two. 

"Once we get the pattern set by that by that company then the others need to fall in line," said Unifor Local 444 president Dave Cassidy. 

For the first time since 1999 (excluding the 2008-09 financial crisis), both Unifor and the United Auto Workers (UAW) will be negotiating with the Detroit Three at the same time. 

These are separate negotiations — the UAW and the Canadian Auto Workers (CAW, which later became Unifor) parted ways in the 1980s, and have bargained separately ever since.

However, Unifor and UAW representatives met as recently as last week in Windsor to advance "each other's' interests throughout the bargaining process", according to a press release.

One auto expert said a one example of a difference between UAW and Unifor bargaining is that the UAW seeks performance bonuses, which are not part of Unifor's strategy.

Contracts for Unifor members at the Detroit Three expire on September 18 at 11:59 p.m.