The labor union representing over 5,000 employees at Ford Motor Company of Canada has approved a new three-year collective contract. The agreement entails annual salary hikes of three percent, continuation of a cost-of-living allowance (COLA), and planned investments totaling $1.2 billion in Canadian manufacturing. Unifor Ford members, encompassed by the master agreement, voted 74 percent in favor, with salaried bargaining unit members at Locals 240 and 1324 showing approval rates of 97 percent and 100 percent respectively.
Unifor National President Lana Payne expressed satisfaction with the ratified agreement, highlighting the positive outcomes achieved despite challenging circumstances faced by Canadian autoworkers and the industry as a whole. The negotiations aimed to build upon previous gains and secure stability amidst unprecedented conditions.
Amidst ongoing concerns regarding U.S. tariffs, trade policy uncertainties, and slower electric vehicle adoption in North America, the agreement signifies Ford’s acknowledgment of Canada’s significance. Ford’s commitment includes injecting an additional $700 million to enhance engine production at Essex Engine Plant (EEP) and the continued expansion of the 7.3-litre engine in Essex. Furthermore, a previously earmarked investment of $550 million in the Oakville Assembly Complex will be upheld.
Ford executives emphasized the company’s enduring dedication to Canada, underscoring the agreement’s focus on investing in both the workforce and the country’s future. CEO Jim Farley highlighted the strategic importance of the agreement in strengthening Ford’s competitive positioning and sustaining manufacturing leadership in Canada for years to come.
Additionally, Ford has pledged to refrain from selling or shutting down any facility represented by Unifor during the contract’s duration. The agreement includes a $10,000 productivity and quality bonus, a $2,000 bonus in December of the first year, and enhancements to the benefits plan, encompassing increased allowances for psychological services, orthodontics, and vision care. Eligible members at Ford’s Windsor Operations and Parts Distribution Centres will also have access to one-time retirement incentives amounting to $50,000.