Unifor chief: Pandemic no ‘excuse' in Canada talks

If executives at the Detroit 3 had hoped Unifor would strike a conciliatory tone as negotiations kicked off during a pandemic and economic downturn, they would have been disappointed.

"This is an industry that has been printing money for the last decade," Unifor President Jerry Dias said at an Aug. 12 news conference following the official start of talks with General Motors, Ford Motor Co. and Fiat Chrysler Automobiles. "I'm not going to allow COVID, the pandemic, to be an excuse to somehow not give our members the [wage] increases they deserve."

In addition to pay raises and a reduction in the current 10-year wage grow-in rate, Unifor seeks investments and long-term product commitments at the FCA and Ford assembly plants covered under the current contracts, which expire Sept. 21. The talks follow the end of vehicle assembly at GM's Oshawa, Ontario, plant in 2019 and more recent job cuts at FCA's Windsor, Ontario, factory and Ford's Oakville, Ontario, facility.

The negotiations began with Dias presenting Unifor's demands in writing to each company — in lieu of ceremonial handshakes — out of concern over the coronavirus, which already halted North American automaking for about two months and sank the companies' revenues. GM and FCA both lost money in the second quarter and Ford reported a profit only because of its investment in Argo AI, the self-driving system developer.

Despite the economic wallop, the situation is nothing like the previous recession, when Unifor's predecessor, the Canadian Auto Workers, made major concessions as part of bankruptcy restructurings at GM and Chrysler. Solvency is not an issue for any of the companies, and none has signaled a desire for a government bailout.

At the same time, the coronavirus has pushed some people away from public transit and ride-hailing in favor of private vehicle ownership, helping to bolster demand, Dias said.

"So I'm hoping — hoping — that we get out of this crisis a lot quicker than anybody had anticipated," he said. "Do I expect a second wave? The answer is yes. Can I predict the future? The answer is no. But I do know that what we're dealing with today is significantly different than 2008-2009."

Dias acknowledged that the union he's led since 2013 faces "serious, serious challenges" as it seeks product commitments. Uncertainty surrounds each of the three assembly plants under the expiring contracts. (A fourth Canadian Detroit 3 assembly plant — GM's Ingersoll, Ontario, factory — is on a separate contract that expires in 2021.)

That uncertainty is sharply felt at the Ford plant. Citing industry sources, AutoForecast Solutions in June said the automaker no longer plans to build the next-generation Ford Edge crossover there. Ford has not confirmed the report, though Dias said Unifor would not accept a deal without "a solution" for Oakville.

When asked last week by Automotive News if Ford was considering ending vehicle production in Canada, outgoing CEO Jim Hackett said he had "nothing to report yet on the negotiations," adding that Jim Farley, named to succeed him Oct. 1, and Gary Johnson, chief manufacturing and labor affairs officer, would lead talks for Ford.

"When I got the job, I went up there and looked at the factory. I wanted to meet with Unifor and see the people. I came away very impressed with the quality of the work force and the facility," Hackett said. "I've met with the prime minister once or twice to get his views on Canada having auto production. Waiting also for USMCA to get settled, so all those variables precede the contract."

FCA's Canadian assembly plants have questions of their own. FCA cut one of three shifts at its Windsor plant in July amid slumping demand for minivans. The future of the Brampton plant, which builds the aging Dodge Charger and Challenger, is also murky, though the muscle cars are believed to remain profitable for the automaker.

Michael Martinez contributed to this report.