The labor union representing over 5,000 employees at Ford Motor Company of Canada has approved a new three-year collective bargaining agreement. The terms of the deal include a yearly wage increase of three percent, continuation of a cost-of-living allowance (COLA), and $1.2 billion earmarked for investments in Canadian manufacturing. The vote on the master agreement saw a 74 percent approval rate from Unifor Ford members, with salaried bargaining units at Locals 240 and 1324 voting 97 percent and 100 percent, respectively.
Unifor National President Lana Payne expressed satisfaction with the ratified agreement, highlighting the positive outcomes achieved despite the challenges faced by Canadian autoworkers and the industry as a whole. The negotiations aimed to build upon previous gains and enhance benefits for all members.
Amidst ongoing issues such as U.S. tariffs, trade policy uncertainties, and slower adoption of electric vehicles in North America, the agreement signifies Ford’s recognition of Canada’s significance. The commitment includes an additional $700 million investment to boost production at the Essex Engine Plant and support the expansion of the 7.3-litre engine. Furthermore, Ford is honoring a previous $550 million investment plan in the Oakville Assembly Complex.
Ford officials emphasized the long-standing partnership with Canada, citing the agreement as a testament to investing in the workforce and the country’s future. CEO Jim Farley highlighted the company’s dedication to manufacturing excellence in Canada, ensuring competitiveness and success for years ahead.
Additional provisions of the agreement include a moratorium on facility closures, productivity and quality bonuses, improved employee benefits, and retirement incentives. The agreement aims to secure stability, growth, and wellbeing for Ford employees in Canada.