Canadian Auto Workers' Union Says Contract Deal Reached With GM

The union representing Canada's auto workers said it has reached a tentative agreement on a new four-year contract with General Motors Co., averting a strike that threatened to disrupt production of GM's sport-utility and other high-margin vehicles.

Unifor President Jerry Dias said early Tuesday that GM has committed to spending "hundreds of millions of dollars" to keep open a vehicle assembly plant in Oshawa, Ont., beyond a potential 2019 closure. Securing future investment in Canada was the union's top priority during the talks.

The largest U.S. auto maker "committed to major investments for the long term," Mr. Dias said during a news conference broadcast over the internet. He said the Oshawa plant—which now makes several light-selling sedans that were expected to fallout of GM's production plans by around 2019—would be retooled under the agreement to produce both cars and trucks.

Around 3,900 Unifor workers covered under the contract still must ratify the proposed agreement once the union's bargaining committee irons out some final details with GM, Mr. Dias said. He also said about 700 temporary workers will be made full-time employees under the agreement.

Write to Mike Colias at Mike.Colias@wsj.com

(END) Dow Jones Newswires

September 20, 2016 01:35 ET (05:35 GMT)

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