GM employees gather in Whitby to hear details of ‘transformation agreement’

General Motors (GM) employees gathered in Whitby on Thursday to hear details of a new transformation agreement that will see an Oshawa plant slated for closure converted into a part-stamping and autonomous vehicle testing facility.

On Wednesday, Unifor and GM Canada said the transition would cost $170 million and save 300 of the 2,600 union jobs at the plant, with the potential to attract more jobs as the facility attracts new customers.

On Thursday, workers who packed a Whitby arena were handed pamphlets that spelled out some of the financial fine print, including details of severance packages.

According to the pamphlets, GM is also offering “enhanced retirement incentives” of up to $150,000 plus $10,000 towards a GM vehicle for skilled trade Oshawa employees who are of retirement age.

Non-trades workers will be offered retirement incentives of $130,000 and a $10,000 vehicle voucher.

Those who have under 10 years with the company are being offered a one-time lump-sum payment of $40,000.

GM and Unifor will also set up a Job Action Centre where full-time employees can apply for $6000 in assistance to be retrained for another career. Part-time workers hired after November 26, 2018, are allotted $3000 for retraining.

As workers flooded out of the arena, some expressed their discontent with the deal. One told CityNews that “we should burn the plant down and p**s on it.”

On Wednesday, Unifor national president Jerry Dias called the agreement “innovative” but admitted it was far from perfect.

“What I do know is you play the cards you’re dealt and you make the best out of a bad situation,” he said. “I will suggest that instead of us facing a hard closure in December of this year … we have an understanding between the parties of a long-term commitment.”

Dias said the agreement will help keep the company in Oshawa over the next decade.

More details: Source – Unifor Special Bulletin distributed to members May 9, 2019

Option 1: Enhanced Retirement Initiative

• Non-trades workers get a $130,000 incentive and a $10,000 vehicle voucher
• Skilled-trades workers get $150,000 retirement incentive and $10,000 voucher
• Eligibility: Must be close to retirement age and have at least 10 years of service

Leave to Retirement Program:

2A

• Depending on exact year of service, get between $55,000 – $95,000 retirement incentive
• Placed on leave and gets 65% of normal wages and accrues years of service and pensionable earnings until they are at their 30-years of service mark for full retirement
• Eligibility: Must have between 26 and 29.9 years of service by December 31, 2019

2B

• Employees can choose to immediately retire and get a prorated special allowance benefit.
• Depending on exact year of service (again between 26 and 29.9 years of service by December 31, 2019) they would get between $90,000 and $115,000 plus a $10,000 vehicle allowance AND the prorated special allowance

Option 3: Layoff to PRIMP (Pre-retirement income maintenance program)

For seniority members who qualify

• 3A – If under age 50, apply for benefits now, get laid off, and get two years of benefits and 1 year of income maintenance until age 50. At 50 – then PRIMP
• 3B – Buyout: one-time payment of $130,000 to $150,000 plus at $10,000 vehicle voucher

Option 4 – Buyout program

• Health care and dental for 6 months after the layoff
• One-time lump-sum payment based on years of service:
  Under 1 year: $10,000
  Under 2 years: $15,000
  Under 3 years: $20,000
  Under 4 years: $30,000
  Under 10 years: $40,000

Option 5 – Oshawa site opportunity

• Job opportunities for the remaining 300 positions in Oshawa will be offered in order of seniority

Option 6 – Special Preferential hire Opportunity

• GM will offer employees in St. Catharines and Woodstock a one-time retirement incentive of $40K
• The jobs that they vacate can then be offered to people moving from Oshawa.
• Seniority members up to $10K in relocation assistance if they’re hired preferentially
• Eligibility: must have more than 5 years of seniority

For any members who don’t qualify for any of the above options, they are eligible for the regular severance agreement under the Collective Agreement