'Effectively there is no border': How a Unifor Strike in Canada Would Affect the North American Auto Industry

In a significant development in late August, Unifor, representing over 18,000 Canadian autoworkers, announced Ford Motor Company as its primary negotiation target among the Big Three automakers, which also includes General Motors and Stellantis. Following negotiations with Ford, Unifor plans to use the agreement as a template for subsequent discussions with the other companies.

Unifor’s National President, Lana Payne, explained the choice, stating, “Ford was selected as the target because we believe that the company is in the best position to reach an agreement that meets the needs of our members and establishes a strong benchmark for Canada’s auto industry.”

This year marks the first occasion in over two decades that Unifor and the UAW (United Auto Workers) are simultaneously negotiating contracts. Despite their history of collaboration, experts anticipate that competition might overshadow joint efforts this time around. Historically part of the UAW as UAW Canada, the union separated in 1985 amid disagreements over concessions during the American auto industry’s struggles, subsequently becoming the Canadian Auto Workers. This entity merged with the Communications, Energy and Paperworkers Union in 2013 to form Unifor, now Canada’s largest private sector union.

The auto industries in the United States and Canada, though spanning across both countries, share a unique relationship due to their geographic and economic ties, primarily concentrated around the Great Lakes region. According to specialist Holmes, while the US auto industry is largely based in the Midwest and spread across the country, Canada’s auto sector is predominantly concentrated in southwest Ontario. This area is integral to the automotive production system that includes states like Michigan, Indiana, and Ohio. The interdependence is further underscored by the significant trade in parts and finished vehicles across borders; approximately 85% of cars manufactured in Canada are exported to the US.

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