MEMBERS of Unifor, Canada’s largest private-sector union, went on strike on Tuesday night, forcing General Motors (GM) to make a U-turn and settle the dispute hours later.

More than 4,000 car workers downed tools at three GM plants in Ontario that produce pick-up trucks and engines after the company rejected the union’s demands over a pay and benefits contract.

Unifor said that it had now reached a deal with GM matching the terms of an agreement struck with Ford that gives a basic hourly wage rise of nearly 20 per cent to production workers and 25 per cent to those in skilled trades.

The deal will also bring improvements in healthcare and retirement benefits.

The walkout was sparked by the initial refusal of GM to match the terms already agreed with Ford.

In a letter to members, the union said it was thanks to their solidarity that the company had now agreed to “all items that company had initially fought us on such as pensions, retiree income supports and converting full-time temporary workers into permanent employees over the life of the agreement.” 

GM said that the agreement “recognises the many contributions of our represented team members, with significant increases in wages, benefits and job security, while building on GM’s historic investments in Canadian manufacturing.”

The deal is still subject to ratification by the union’s members, but it could spare GM becoming involved in major union disputes in both Canada and the United States.

In the US, members of the United Auto Workers union have been on strike since mid-September as they push for a wage increase of 36 per cent over the course of a new four-year contract.

The Big Three US car manufacturers, Ford, GM and Stellantis, are offering about 23 per cent.