As Canadian politicians talk more military spending, how could that benefit London, Ont.?

For 19 years, Robin Claessens has worked at General Dynamics Land Systems-Canada (GDLS) in London, Ont., in a good-paying union job she'd like to keep until the end of her working career.

She started as a painter before moving on to an assembly position, later transitioning into her current job as a union representative. 

The company, which has contracts to produce light-armoured vehicles for the Canadian military and other clients, has been good to her, but Claessens fears the work could taper off by next year. 

"We see a lull in our production schedule for 2026," she said. "So we're hoping the federal government will step up and order more Canadian vehicles from us to keep everybody employed."

The potential lull that concerns Claessens is the company's current contract to build 360 Armoured Combat Support Vehicles (ACSVs) for the Canadian Armed Forces. It's expected to reach the end of production next year. 

A controversial contract to build armoured vehicles for Saudi Arabia's military has now completed production. 

New concerns about the availability of work at GDLS comes with Canada in a snap federal election and a changing relationship with the United States, given President Donald Trump's threats of annexation. 

More than in recent elections, federal politicians are talking more openly about increasing military spending. 

"Now would be the time that we wrap the Canadian flag around our military and the Canadian men and women that can build for a military," said Jeff Skinner, a chair with Unifor Local 27, the union that represents workers at the London plant on Oxford Street East. "I'm honestly not sure who would be more supportive, whether it's Liberal or Conservative." 

Trump has criticized Canada for falling short of NATO's defence spending target of two per cent of gross domestic product (GDP).

Liberal Leader Mark Carney has said he will hit that mark by 2030. On Monday, in addition to that, he renewed a commitment to defence spending, including new submarines and heavy icebreakers. Carney didn't mention GDLS-Canada or armoured vehicles specifically. 

Conservative Leader Pierre Poilievre said last year he won't commit to NATO's defence spending target.

But if defence spending does increase, could any of it trickle down to GDLS in London? 

Erika Simpson, a Western University associate professor of international relations, said it could lead to more armoured vehicle production at GDLS. However, she said, that will have to be weighed against other defence spending priorities in a political climate that changes almost daily. 

"We have to ask ourselves, 'Do we want to continue funding the United States at the same time as Mr. Trump is talking about annexing Canada?'" said Simpson. 

She also pointed out there are plenty of other ways Canada could direct more military spending, from submarines that can operate under the Arctic ice to new navy frigates. In a January opinion piece in the Globe and Mail, she argued Canada should develop its own peacekeeping force to patrol along the Canada-U.S. border. 

"It would signal to the United States that we're serious about our sovereignty and about the possibility of being annexed," she said. 

No firm commitment to light-armoured vehicles

So where does that leave light-armoured vehicle production in London?

A GDLS-Canada spokesperson declined to comment for this story.

However, there are indications there could be more work for the company.

Last spring, the federal government announced a renewed vision for Canada's defence. That document makes specific mention of a plan to explore options to establish an LAV production program to replenish Canada's fleet and support NATO allies.

NDP candidate Lindsay Mathyssen is seeking re-election in London-Fanshawe, the riding where GDLS-Canada is located. She's also been the party's defence critic since 2021. 

Mathyssen supports increased defence spending with an emphasis on using domestic suppliers, given the changed relationship with the United States.

"This is about building Canadian and buying Canadian," she said. 

She also wants to see better supports for those who serve in the Canadian military, including improved housing and health care.

Although GDLS-Canada is a subsidiary of an American company, Mathyssen said she supports the company continuing to receive Canadian defence contracts. 

She pointed out GDLS relies on more than 200 suppliers in the London area, a business relationship that generates significant spin-off economic activity.  

"There's still a significant footprint in Canada and of course here in London," she said. "If they are committed to staying in Canada, and building in Canada and providing those good jobs, then that's a commitment to Canadian workers."

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