The labor union representing over 5,000 employees at Ford Motor Company of Canada has approved a new three-year collective agreement. The agreement entails annual wage hikes of three percent, continuation of a cost-of-living allowance (COLA), and $1.2 billion earmarked for Canadian manufacturing investments, as disclosed by both the union and the company.
According to the union, 74 percent of Unifor Ford members covered by the master agreement voted 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, emphasizing its significant benefits and stability amid challenges faced by Canadian autoworkers and the industry as a whole.
Noteworthy is the timing of the deal amidst challenges faced by North American automakers, including U.S. tariffs, trade policy uncertainties under the Trump administration, and slower-than-expected adoption of electric vehicles in the region. Unifor Local 200 President John D’Agnolo highlighted the successful outcomes achieved for members despite these pressures, attributing Ford’s investment in Canada to the country’s strong support for the automaker.
Under the agreement, Ford has committed an additional $700 million to enhance its 5.0-litre engine production at Essex Engine Plant, with plans for a third shift, and to further support the expansion and production of the 7.3-litre engine in Essex. Additionally, Ford will fulfill its previously planned $550 million investment in the Oakville Assembly Complex during the agreement’s duration, reinforcing the company’s enduring commitment to Canada, as stated by Ford officials.
CEO Jim Farley underscored the agreement’s focus on investing in people and Canada’s future, emphasizing Ford’s longstanding manufacturing leadership in Canada and its strategic positioning for future competitiveness and success. The deal also includes a commitment from Ford to refrain from selling or closing any Unifor-represented facility, either wholly or partially, throughout the agreement’s term.
Moreover, the agreement offers a $10,000 productivity and quality bonus, a $2,000 December bonus in the first year, enhanced benefits such as increased allowances for psychological services, orthodontics, and vision care, and retirement incentives of $50,000 for up to 127 eligible members at Ford’s Windsor Operations and Parts Distribution Centres.