Canadian Union to Strike at GM SUV Plant

By Mike Colias

A Canadian union failed to reach an agreement on a new contract with General Motors Co. and its members will strike, local labor leaders said late Sunday, threatening to crimp supply of the auto maker's top-selling SUV.

Unifor Local 88, which represents about 2,450 workers at GM's CAMI Assembly plant in Ingersoll, Ontario, said on its website that its members "will be on strike" as of Sunday night, after its contract expired. In a statement, GM said it is "disappointed we were not able to complete a new agreement" and encouraged the union to resume negotiations.

The CAMI plant produces the compact Chevrolet Equinox, which competes in the most popular vehicle segment in the U.S. market. Equinox sales have been surging as GM winds down production of an old model and rolls out an all-new version.

The local chapter has said it wants improved wages and benefits as well as commitments for further investments in the plant that would bolster job security. GM this year laid off several hundred workers, though the factory remains one of the auto maker's busiest in North America.

Crossover SUVs have become an important battleground for auto makers as prolonged low gas prices and shifting consumer tastes fuel strong growth. The vehicles generally are more profitable than sedans, which have fallen out of favor in recent years.

While GM invested more than $600 million in the Ingersoll plant to gear up for the redesigned Equinox that went on sale this spring, it also moved some production to Mexico, which should give the auto maker some flexibility should the strike drag out.

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

(END) Dow Jones Newswires

September 17, 2017 23:52 ET (03:52 GMT)

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