General Dynamics Land Systems Canada is lobbying the federal government for new military vehicle orders as the London-based manufacturer faces potential layoffs without additional work, union officials said, according to a report from The London Free Press.
The Oxford Street East facility needs an immediate order of 150 light armoured vehicles (LAVs) and a commitment for at least 25 vehicles annually over the next decade — a 400-vehicle total — “just to keep the lights on,” according to Jeff Skinner, chairperson of the GDLS unit for Unifor Local 27.
“We need Canada to support us now. We’re looking for a long-term commitment from this government to protect these workers,” Skinner said.
The manufacturer employs approximately 1,800 workers, including 485 Unifor members, with many salaried staff serving as engineers.
While costs vary depending on vehicle type, the average LAV costs about $6 million, potentially valuing a 400-vehicle order at roughly $2.4 billion. In 2019, Ottawa ordered 360 LAVs in a deal valued at $3 billion, which included support and maintenance.
Ontario Premier Doug Ford is also supporting the bid, pledging $25 million for new technology and machinery, according to Skinner.
Military analyst David Perry, president of the Canadian Global Affairs Institute, called the 400-vehicle request reasonable, noting, “The Canadian army doesn’t have enough armoured vehicles for its units.”
The lobbying effort comes amid rising international tensions, with Canada pledging to increase defense spending from 1.3 percent of GDP to NATO’s required 2 percent. The Department of National Defence expects expenditures to reach 1.76 percent of GDP by 2030, growing from approximately $40 billion this year to $58 billion.
London North Centre MP Peter Fragiskatos has been advocating for GDLS and believes strengthening military ties with Europe may create additional opportunities.
“European leaders are engaging Canada more in military relations. We see now the US was once a reliable ally perhaps becoming an adversary aligning with Russia and not our NATO partners,” Fragiskatos said.
If GDLS receives an order, production would take about 18 months to ramp up, as the company coordinates with more than 600 suppliers across 100 Canadian communities.
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