The labor union representing over 5,000 employees at Ford Motor Company of Canada has approved a new three-year collective bargaining agreement. The agreement features annual wage hikes of three percent, the continuation of a cost-of-living allowance (COLA), and an outlined $1.2 billion investment plan in Canadian manufacturing, as disclosed by both the union and the company.
Unifor Ford members governed by the master agreement voted 74 percent in favor of the deal, with salaried bargaining unit members at Locals 240 and 1324 voting 97 percent and 100 percent, respectively. Unifor National President Lana Payne expressed satisfaction with the ratified agreement, noting the substantial benefits and stability it brings amidst challenges facing Canadian autoworkers and the industry at large.
Amidst adversities like U.S. tariffs, trade policy uncertainties, and slower adoption of electric vehicles in North America, the agreement signifies a win for Unifor Local 200 President John D’Agnolo, who stressed Ford’s recognition of Canada’s significance as a market. Ford’s additional commitment of $700 million to enhance engine production at Essex Engine Plant and support the 7.3-litre engine in Essex, alongside the $550 million investment in Oakville Assembly Complex, further solidifies its dedication to the Canadian market.
Ford officials emphasized the long-term commitment to Canada reflected in the agreement, with CEO Jim Farley highlighting the investments as crucial for the company’s future competitiveness and success. Additionally, Ford agreed to refrain from selling or shutting down any Unifor-represented facility during the agreement’s validity period.
The agreement also includes a $10,000 productivity and quality bonus, a $2,000 December bonus in the first year, enhanced employee benefits encompassing psychological services, orthodontic, and vision care allowances, and retirement incentives worth $50,000 for eligible members at Ford’s Windsor Operations and Parts Distribution Centres.
