General Motors (GM) has previously ratified a new labor contract last month. Now, the Fiat Chrysler Automobiles (FCA) is set to ratify its own on Oct. 16. The two automakers have both pledged to upgrade their Canadian plants. Ontario Economic Minister Brad Duguid has expressed willingness to provide assistance.
Saving Ontario's Auto Sector
The Automative News Canada has recently talked to Duguid over the phone. He admitted that they were at risk of potentially losing GM's Oshawa plant and FCA's Brampton plant. In fact, there are still other plants that need to be saved.
However, the Economic Minister was excited to share that such contract with GM is really beneficial. He revealed that the possible upgrade of the Oshawa plant will prevent their auto sector's demise.
Duguid did not specify how much financial support they are willing to contribute. But he reiterated that the Ontario government is ready to help.
He pointed out that governments usually pay most, if not all, of the capital costs of assembly plants. They are also committed to giving such incentives.
FCA And General Motors Deals
FCA has promised to spend $325 million. It will be used to upgrade the aging paint shop at its Brampton plant. It is where the Chrysler 300 and Dodge Charger are being built.
The Automative News further reports that will not only spend $554 million for its Oshawa and St. Catherine's plants. They will bring the assembly of the Chevy Silverado to Oshawa. Some engine work will be also be done again in St. Catherine's.
A GM spokesman has cleared that discussions with the provincial and federal governments are still ongoing.
According to The Star, Unifor members have voted in favor of the said new four-year contract with GM. Among the benefits for them includes a wage increase and signing bonuses. 700 temporary workers will also become permanent.
Next Target For Another Deal Is With Ford
Duguid disclosed that their next target is the Ford Motor Co. They will be working on that after the contract with FCA is ratified. He has said that they strongly want to see investments made with Ford.