MONTREAL, July 29, 2026 /CNW/ -- Unifor is welcoming an almost $2 billion investment in public passenger rail including the eventual return of some locomotive assembly for the first time in decades.

"Our members and union are very pleased to see these investments in our public passenger rail system and is something we have been fighting for for a long time," said Unifor National President Lana Payne. "This investment will lead to building up our own manufacturing capacity which is key as we send a message about Canada's determination to strengthen its advanced manufacturing sector."

The investment includes $1.6 billion for 45 new locomotives built by Stadler, a Swiss manufacturer with a global centre of competence for mainline locomotives in Spain, which will complete final assembly of up to 36 of those locomotives in Canada. A further $357 million will fund a new VIA Rail assembly and maintenance facility in Montréal, built by Pomerleau, which will also support maintenance and operation of the new fleet at VIA Rail's Montréal Maintenance Centre over the long term.

Unifor has been clear that it expects government to use its procurement strength to build and buy Canadian and there is no better time to do that than in the face of trade aggression from the United States.

"Year after year, our members have demonstrated that they have the expertise needed to keep Canada's passenger rail network running. Today, that expertise is being recognized. Strengthening Montréal's maintenance hub around a new fleet of locomotives is excellent news. We also welcome the return of passenger locomotive assembly to Canada and hope this marks the first step toward rebuilding our domestic rail manufacturing capacity. Canada must do more than assemble—we must also design, manufacture and innovate here at home."

Unifor wrote to Prime Minister Mark Carney on March 27, 2026 concerning this procurement. The union's pre-budget submission recommended that Buy Canadian requirements be applied retroactively to nation-building procurements over $1 billion that have not yet been awarded, naming the VIA Rail long-distance fleet specifically.

"We look forward to the second part of this project, the train cars, being announced and with it a strong message that we are building Canada infrastructure using Canadian workers in Canadian facilities."

The new locomotives will use hybrid battery-diesel technology with batteries supplied by ABB from its Saint-Laurent facility, and are described by the government as North America's first hybrid-powered passenger locomotives. The government says the investments will support the equivalent of 1,200 full-time jobs across manufacturing, construction, engineering and long-term maintenance over the course of the project. Funding flows from Budget 2024, which committed to replacing VIA Rail's aging fleet outside the Québec City to Windsor corridor.

At least nine of the 45 locomotives will still be built offshore, and the separate contract to replace VIA Rail's long-distance, regional and remote passenger cars has not been awarded.

Unifor represents more than 2,500 workers at VIA Rail. National Council 4000 represents 1,800 employees working in station services, headquarters, maintenance centres and onboard trains. Local 100 represents 700 employees working as diesel engine mechanics, electricians, railcar technicians and general workers.

Unifor is Canada's largest union in the private sector, representing 320,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.

SOURCE Unifor