Top auto officials are optimistic as contract negotiations and trade talks are set to begin.
Canada’s auto industry is heading into a critical round of contract talks amid growing concerns over tariffs, trade uncertainty, and the future of the Canada-United States-Mexico Agreement - also known as CUSMA.
Earlier this month, Unifor announced they will begin auto talks with Ford on June 22, setting the stage for bargaining with General Motors and Stellantis.
These talks come as the industry continues to deal with U.S. tariffs while bracing for upcoming CUSMA renegotiations that could shape the future of auto jobs in Canada.
The U.S. imposed 25 per cent tariffs on vehicles and auto parts and 50 per cent tariffs on steel, aluminum and copper.
Trevor Longley, President of Stellantis Canada, says access to the American market remains essential for Canadian manufacturing facilities like the Windsor Assembly Plant.
“The reality is that Canadian business is predicated on access to the American market, as 90 per cent of what we do, and build, here at this plant [Windsor Assembly Plant] and what we were building in Brampton, and that’s true really of the industry, and so access to the U.S. market is an important part of a long-term future.”
Longley says he expects complicated, long discussions.
“We’re looking for a free trade agreement, and a good discussion around CUSMA, and the Section 232 tariffs, and those are unlocking the potential that our market has. It’s a difficult situation and transition with tariffs right now, but we’re as an industry working through it.”
Matt McAlear, CEO of Chrysler and Dodge, says tariffs are only one part of a much larger challenge facing automakers.
“There’s so much that goes into the manufacturing and production of vehicles, and selling vehicles, that is it a challenge, but it’s a challenge for the entire industry that we’re all working with, and we are finding ways to be successful and position our vehicles for consumers to drive demand and ultimately drive sales.”
Meanwhile, Unifor Local 444 President and Stellantis Bargaining Chair James Stewart says union members are entering negotiations determined to protect jobs and push for more production in Canadian plants.
“We can’t bargain away all of the problems the auto industry in Canada is facing. A lot of it has to do with the CUSMA agreement, and trade with the United States. So we can’t resolve all our problems, and there’s room in our plants to make sure we can fully maximize our plants, including in Brampton and Windsor. We have capacity here.”
He says they have no intention of moving backwards in negotiations.
“Our members deserve improvements, our members want improvements. I think there’s a realistic expectation by our members, they understand what’s happening in the industry, but they also know wage cuts, pension cuts, and benefit cuts don’t fix the problem. So we’re not going to try that. We’re looking to make gains.”
Stewart says governments also need to take a stronger role in protecting Canadian manufacturing during the next round of trade talks.
“I think they can use their leverage in the CUSMA renegotiations, and if they can’t bargain a good CUSMA agreement, then don’t bargain a deal at all. It’s better not to have a bad agreement, then no agreement. We can work on agreements in the future and I think Canada’s got to use that leverage. So it’s going to help from government, and it’s going to take willing partners at the table to figure out how we can solve that.”
Stewart says the Windsor Assembly Plant builds between 1,200 and 1,300 vehicles every day, but has the capacity to build 1,500.
Negotiations with Ford are expected to establish the pattern for talks with the rest of the Detroit Three automakers.