GM reaches tentative labor pact with Canada union at Equinox plant

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MONTREAL (Bloomberg) -- General Motors and Canada's Unifor union reached a tentative settlement on a new labor agreement that covers employees at the Chevrolet Equinox assembly plant in Ontario.

Approval by workers in a vote schedule for Sunday, Sept. 15, would assure uninterrupted production of the crossover, one of GM's best-selling vehicles. Chevy had a 41-day supply of Equinoxes on Sept. 1, well below the GM average of 64 days.

Union members will vote on the accord at a meeting in London, Ontario, starting at 3 p.m. ET, Unifor said Saturday in a statement.

Details of the agreement will be released upon ratification.

Unifor was created last month by the merger of the Canadian Auto Workers and the Communications, Energy and Paperworkers union.

It represents about 2,500 employees at the CAMI facility in Ingersoll, the automaker said in a separate statement confirming the accord.

The plant also builds the GMC Terrain, while the Equinox is assembled at a second site, in Spring Hill, Tenn.

U.S. Equinox sales have risen nearly 13 percent this year through August to 169,977. Only Chevy's Cruze compact car and Silverado pickup have delivered more sales for GM.

The Ingersoll bargains separately from other GM plants represented by Unifor.

Under a four-year labor agreement approved last year, the hourly rate for new hires at those plants was trimmed to C$20.40 ($19.71) from C$23.80.

The deal reached last year between the CAW and GM was similar to agreements reached with Ford Motor Co. and Chrysler Group.

GM on March 8 announced plans to invest in the Ingersoll plant to install body shop equipment and tools to permit the factory to build more types of vehicles.

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