The labor union representing over 5,000 employees at Ford Motor Company of Canada has approved a new three-year collective contract. The agreement features a three percent annual wage hike, continuation of a cost-of-living allowance (COLA), and a planned $1.2 billion investment in Canadian manufacturing. Unifor Ford members under the master deal endorsed the agreement with a 74 percent vote, while salaried bargaining unit members at Locals 240 and 1324 approved it by 97 and 100 percent, respectively.
Unifor National President Lana Payne expressed satisfaction with the ratified agreement, emphasizing the significant benefits and stability it offers amidst challenging times for Canadian autoworkers and the industry. Despite negotiating amid crisis situations, the primary objective was to enhance various aspects for all members, building upon the progress made in 2023.
Amidst ongoing issues such as U.S. tariffs and uncertainties due to evolving trade policies, the agreement highlights Ford’s recognition of Canada’s importance. The company’s commitment includes an additional $700 million investment in engine production at Essex Engine Plant (EEP), supporting expansion and production of the 7.3-litre engine in Essex. Additionally, Ford is fulfilling its previously planned $550 million investment in the Oakville Assembly Complex over the contract’s duration.
Ford officials reiterated the company’s dedication to Canada’s long-term prospects through the new agreement, stating that it signifies investments in both the workforce and the nation’s future. CEO Jim Farley highlighted the significance of these commitments in enhancing Ford’s competitive edge and ensuring long-term success in Canada’s manufacturing sector.
Moreover, as part of the agreement, Ford has agreed to a moratorium on selling or shuttering any facility represented by Unifor during the contract’s validity. Employees will benefit from a $10,000 productivity and quality bonus, a $2,000 December bonus in the first year, improved employee benefits including expanded allowances for services like psychological, orthodontic, and vision care, and retirement incentives for eligible members at Ford’s Windsor Operations and Parts Distribution Centres.