TORONTO – The Canadian auto sector is set to receive a major boost with a $15 billion investment in new Honda Canada facilities for electric vehicle (EV) assembly, and battery and battery material production. The multi-government investment announced will enable the creation of a new battery cell plant in Alliston, Ontario, and several joint venture battery component facilities, expected to generate approximately 1,000 new, direct jobs.
Unifor National President Lana Payne emphasized the necessity of government investment to support the inevitable shift to electric vehicles. Payne stressed the importance of ensuring that these investments are accompanied by guarantees for good-paying jobs and transition supports for workers, along with respect for their rights to organize.
The investment marks the most significant commitment to Canada’s auto sector to date, surpassing the achievements since 2020 when Unifor mediated the historic EV agreement with Ford Motor Company. However, specifics concerning retooling of Honda’s existing factories, potential production halts, future product plans, or transition measures for impacted employees remain undisclosed.
Reflecting on the ongoing industry transformation, Payne expressed concerns over the instability faced by autoworkers during such transitions. She highlighted the need for clear communication regarding job and income security during the transition and the nature of future jobs.
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This investment is supported by strategic federal and provincial funding estimated at $5 billion. It is projected to significantly expand Canada’s electric vehicle production capacity and its ability to process battery materials. This development represents the fourth major battery cell manufacturing initiative in Canada, following announcements of similar "gigafactory" projects by Stellantis, Volkswagen, and Northvolt in Ontario and Quebec, respectively.
According to Unifor Quebec Director Daniel Cloutier, the proactive efforts by governments contrast sharply with past administrations under which the auto industry saw decline. This shift is viewed as a critical and effective strategy in cementing the future of Canada’s auto sector.
Despite some current setbacks like EV production slowdowns and retooling delays, Uniforn outlined 29 specific recommendations in 2022 to foster industry growth and effectively manage the transition in favor of workers.
Unifor calls on governments to ensure that companies receiving public funds provide high-quality jobs for Canadians and support unbiased union formation. The union also awaits the prompt enactment of new tax credits aimed at encouraging investments in clean technology and EV supply chains, as outlined in the 2023 and 2024 federal budgets.
Unifor, which represents 315,000 workers across various sectors, continues its advocacy for workers’ rights, equity, and social justice both domestically and internationally.
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For media queries or to set up interviews via FaceTime, Zoom, or Skype, please reach out to Unifor’s Communications Director Kathleen O’Keefe at her email or via phone at (416) 896-3303.
Words by: Craig Clowes
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