Canada’s Unifor union has validated a deal with General Motors that will see C$ 554 million ($418.83 million) invested in regional plants, the labor group stated on Sunday as it prepares for related talks with Fiat Chrysler Automobiles NV.
The deal was validated after 64.7 percent of employees voted approve it, Unifor stated in a declaration.
Unifor, which represents about 4,000 GM workers, reached the offer on Monday. The four-year offer granted job security and wage increases, but less beneficial pensions than in the past.
GM’s Canadian arm likewise pledged to eliminate the C$ 2.3-billion ($1.74 billion) deficit in the pension plans for unionized employees and retired people, the union stated.
The ratification is anticipated to impact some 16,000 Unifor workers with Fiat Chrysler Autos NV and Ford Motor Co, whose agreements likewise are up for settlement.
Under a procedure called patterned bargaining, Unifor’s contract with GM will be utilized as a template for talks with the other companies, which are expected to agree to similar conditions.
Unifor has stated it will negotiate next with Fiat Chrysler, and has set a tentative strike due date of midnight October 10.
Fiat Chrysler did not instantly react to a request for remark.
