by Unifor negotiations with Detroit Three: Tensions due to trade war and production cuts
Canadian union Unifor is preparing to begin negotiations with the “Big Three” automakers (Ford, GM, Stellantis) next week. These negotiations are likely to be tense due to a number of factors. In addition to the ongoing trade war between the US and Canada, President Trump is threatening to withdraw from the United States-Mexico-Canada Agreement (USMCA).
The situation is complicated by unexpected decisions by automakers. For example, GM in 2025 ceased production of the BrightDrop at the CAMI Assembly plant and reduced a shift at Oshawa Assembly in January.
Stellantis has drawn the ire of politicians by abandoning plans to build the updated Jeep Compass at the Brampton Assembly plant. Instead, the company plans to produce it in the US at the Belvidere Assembly plant in 2027.
Ford promised to turn Oakville Assembly into a “Canadian electric vehicle production hub”, where it planned to produce five different models. However, in 2024 the automaker scrapped that plan and now intends to produce Super Duty trucks there.
Beginning of negotiations and union priorities
This is just the tip of the iceberg, but negotiations with Ford are scheduled for June 22. Unifor’s current agreement with the Detroit Three expires this fall, and the union recently outlined a number of priorities for this year’s talks. The statement notes that the discussions are taking place at a “critical time for our members and Canada’s auto industry” as they continue to face “uncertainty due to ongoing trade disputes, tariff threats, production disruptions, and a rapidly changing automotive landscape.”
The union did not go into details but said it wants Ford, GM and Stellantis to provide job and income security guarantees, as well as a “stable foundation for Canada’s automotive industry.” Unifor also aims to prioritize pension security, retirement security, and health benefits.
The union warned that it “will not participate in concessions” and “will consider appropriate next steps” if a deal with Ford is not reached by the July 10 deadline.
Additional context
The situation surrounding the Unifor negotiations is indicative of the entire North American auto industry. The trade war and the threat of withdrawal from the USMCA are creating an atmosphere of uncertainty that is forcing manufacturers to reconsider their production strategies. The decisions by Stellantis and Ford to move production to the US suggest that Canada risks losing its status as a key manufacturing hub. At the same time, Unifor’s hardline stance against concessions could lead to prolonged strikes, which would only deepen the crisis. If the parties fail to reach a compromise by the July deadline, it could have serious consequences not only for workers but also for the entire Canadian economy, which is heavily dependent on the automotive sector.
