September 18, 2002

GM Canada and CAW reach tentative three year agreement

General Motors of Canada reached a new tentative three-year agreement with the Canadian Auto Workers today that will provide 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.

Details of the wage and benefit increases were not immediately available, however, GM did provide information about investments that it will make at its Canadian manufacturing facilities as a result of the negotiations.

“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.

GM confirmed that beginning in 2003 it would create approximately 328 new jobs with future
manufacturing and assembly work at the St. Catharines components plant. 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.

Earlier this year, GM announced a new elpo-phosphate paint system for the
Oshawa car plant. Today GM announced it will construct a new 405,000 square foot colour coat paint
facility adjacent to the elpo system that is currently under construction. The new
paint shop will utilize the latest in application technology.

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

Connect with