The labor union representing over 5,000 employees at Ford Motor Company of Canada has approved a new three-year collective agreement. This agreement includes annual wage hikes of three percent, the continuation of a cost-of-living allowance (COLA), and $1.2 billion earmarked for investments in Canadian manufacturing. The approval rate for Unifor Ford members covered by the master agreement was 74 percent, with salaried bargaining unit members at Locals 240 and 1324 voting 97 percent and 100 percent, respectively.
Unifor National President Lana Payne stated that despite the challenges faced by Canadian autoworkers and the industry as a whole, the ratified agreement provides tangible benefits and much-needed stability. The negotiations aimed to build on the progress made in 2023, with a focus on enhancing various aspects for all members.
Amidst uncertainties stemming from U.S. tariffs, evolving trade policies under the Trump administration, and slower-than-expected electric vehicle adoption in North America, the agreement signifies a positive development. Unifor Local 200 President John D’Agnolo highlighted the success in securing gains for members despite external pressures, emphasizing Ford’s acknowledgment of Canada’s significance as a market for their vehicles.
As part of the deal, Ford will allocate an additional $700 million to enhance its 5.0-liter engine production at Essex Engine Plant (EEP) and facilitate the expansion of the 7.3-liter engine in Essex. Moreover, a pre-planned investment of $550 million in the Oakville Assembly Complex over the agreement’s duration will be upheld. Ford officials underscored the company’s enduring commitment to Canada, emphasizing investments in people and the nation’s future.
CEO Jim Farley expressed optimism about the agreement, highlighting Ford’s sustained investments in Oakville, Windsor, and Essex to reinforce its manufacturing leadership in Canada. Additionally, Ford committed to refraining from selling or closing any Unifor-represented facility during the agreement’s term. The agreement also includes performance and quality bonuses, improved employee benefits, and retirement incentives for eligible members at Ford’s Windsor Operations and Parts Distribution Centres.