Thunder Bay plant secures major subway car contract, safeguarding hundreds of jobs

Unifor is pleased to hear today’s long-awaited federal government commitment to fund new TTC subway cars, with the union’s expectation that the investment will result in good jobs at the Alstom plant in Thunder Bay. (File photo/Unifor/Presswire)

Hundreds of skilled manufacturing jobs in Thunder Bay, Ont., have been secured after the federal, provincial and Toronto governments announced a sole-source agreement with Alstom Transport Canada Inc. to build 70 new subway cars for Toronto’s transit system.

The deal, confirmed in a joint announcement on Friday, ensures that Alstom’s Thunder Bay facility will produce the trains for the Toronto Transit Commission’s (TTC) Line 2 (Bloor-Danforth), along with additional cars for future extensions. The move safeguards critical employment in northwestern Ontario amid ongoing trade tensions with the United States.

A win for Thunder Bay’s workforce

The agreement has been hailed as a major victory for Thunder Bay’s manufacturing sector, which has long been a hub for transit vehicle production. The Northwestern Ontario Municipal Association praised the decision, emphasizing its regional economic impact.

“This is a win not just for Thunder Bay, but for all of northwestern Ontario,” said the association’s president Rick Dumas in a new release Aug. 15. “The skilled workers at Alstom’s Thunder Bay plant have a proven track record of excellence, and this agreement provides stability for families, strengthens our local economy, and keeps our region at the forefront of Canada’s transit manufacturing sector.”

Thunder Bay City Councillor and NOMA Vice-President Kristen Oliver echoed the sentiment.

“(Friday’s) announcement demonstrates what can be achieved when all levels of government work together. This sole-source agreement means good jobs, economic security, and a strong future for Thunder Bay’s manufacturing sector,” she said.

Unifor, the union representing Alstom workers, also celebrated the decision, calling it a “great victory” for Canadian workers.

“Unifor fought long and hard to get the federal, provincial, and municipal governments to support a Made-in-Canada solution,” said Unifor National President Lana Payne in a separate news release. “We must use our Canadian procurement dollars to support Canadian workers and Canadian-made products, especially given the current trade war.”

Sole-sourcing amid trade pressures

The decision to sole-source the contract comes as Canada faces economic uncertainty, including U.S. tariffs on softwood lumber and other trade disputes. Governments emphasized the need for a “Team Canada and Team Ontario” approach to protect domestic industries.

“In the face of U.S. tariffs and economic uncertainty, this decision will support Canadian and Ontario workers with good manufacturing jobs and ensure reliable trains for Toronto transit riders,” the governments stated in their joint release.

The contract includes 70 six-car trains – 55 to replace aging Line 2 subway cars and 15 for the Yonge North and Scarborough extensions. Alstom must meet strict conditions, including maximizing Canadian content, adhering to TTC specifications and undergoing an independent price assessment.

Ontario Transportation Minister Prabmeet Sarkaria underscored the province’s commitment to local manufacturing.

“Our government is proud to protect Ontario from U.S. tariffs by ensuring the TTC’s Line 2 subway trains will be made in Ontario, by Ontario workers,” he said.

Securing Thunder Bay’s economic future

The Alstom plant has been a cornerstone of Thunder Bay’s industrial economy for decades, producing transit vehicles for cities across Canada. Earlier this year, Ontario also committed $500 million to refurbish 181 GO Transit rail coaches at the facility, further stabilizing employment.

“We are excited and ready to build the subways of the future,” said Justin Roberts, President of Unifor Local 1075, which represents the plant’s workers. “Reliable, sturdy, and resilient – the way (Friday’s) announcement has contributed to the working lives of our members.”

The TTC expects negotiations with Alstom to conclude by year’s end, with production set to begin soon after. The aging Line 2 fleet will remain in service until the new trains arrive.

A model for Canadian procurement

The agreement sets a precedent for leveraging public transit investments to bolster domestic manufacturing. With billions in transit spending planned nationwide, unions and industry leaders hope to see similar commitments to Canadian jobs.

“Governments in Canada will spend tens of billions of dollars on transit vehicles in the coming years,” Unifor noted in its news release. “In a sector valued at $2.9 billion GDP in recent years, leveraging this procurement to maximize Canadian content means procuring trusted, reliable vehicles that support Canadian jobs.”

For Thunder Bay, officials say the deal is more than just an economic boost – it’s a reaffirmation of the region’s vital role in Canada’s industrial landscape.

“At a time when global trade pressures are impacting Canadian industries, we must stand together as Team Canada and Team Ontario,” said Oliver.