General Motors of Canada and Canadian Auto Workers reach tentative three year agreement

TORONTO, Sept. 17, 2002 /CNW/ - General Motors of Canada reached a new tentative three-year agreement with the Canadian Auto Workers today that recognizes the contribution of GM's 19,000 hourly employees with wage and benefit increases.

"The agreement we reached addresses many of the issues the CAW raised at the outset of these negotiations and provides the means for GM to build on the success we have achieved in quality and productivity," said Al Green, GM of Canada's vice-president and general director of personnel. "GM is operating in an intensely competitive North American market and reaching an agreement prior to the deadline allows us to continue to build momentum in the market with the award winning vehicles produced in Canada."

"GM of Canada will build on its commitment to Canada and our employees with plans for substantial new capital and technology investments. Investment plans totaling approximately $800 million were confirmed during bargaining for the St Catharines component operations and the Oshawa truck and car plants," said GM of Canada president, Michael Grimaldi.

The St. Catharines components plant has a long history of producing a variety of high quality powertrain and other components. GM confirmed that beginning in 2003 it would create approximately 328 new jobs with future manufacturing and assembly work. GM will also invest in new tooling to manufacture a new transmission gear set for a future transmission model in the 2005/2006 timeframe.

Mr. Grimaldi also confirmed that, beginning in the first quarter of 2004, GM of Canada will produce an all-new full-size truck model at the Oshawa truck plant. The all-new four door crew cab with a short box will compliment the existing four door extended cab currently assembled at the Oshawa truck plant. The addition of this new model will further strengthen GM's industry leading truck line-up with increased capacity in the growing crew cab pick-up truck market.

Earlier this year, GM announced a new elpo-phosphate paint system for the Oshawa car plant. Today GM announced it will construct a new colour coat paint facility with a footprint of four hundred and five thousand square feet adjacent to the elpo system that is currently under construction. The new paint shop will utilize the latest in application technology to further enhance the award winning quality of vehicles produced at the plant.

GM also confirmed the Oshawa car assembly plant No. 2 has been named the lead assembly plant for the development of the next generation Buick Regal expected in the market in early 2005.

"This extensive investment in new capital and technology in GM of Canada operations builds on an impressive investment history. In the last decade, GM of Canada has invested $6 billion in new product programs and technology. These investments recognize the hard work of our employees and their commitment to continuous improvement in quality and productivity," said Grimaldi.

Headquartered in Oshawa Ontario, General Motors of Canada employs 25,000 people nationwide. GM of Canada manufactures a variety of vehicles, engines, transmissions and other components, and markets the full range of General Motors' vehicles and related services through 807 dealerships and retailers across Canada. Vehicles sold through this network include Chevrolet, Oldsmobile, Pontiac, Buick, GMC, Cadillac, Hummer, Saturn, Saab and Isuzu. More information about GM of Canada can be found at:gmcanada.com.