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 an annual wage hike of three percent, continuation of a cost-of-living allowance (COLA), and $1.2 billion earmarked for investments in Canadian manufacturing. Unifor Ford members under the master agreement endorsed the deal with a 74 percent vote, while salaried bargaining unit members at Locals 240 and 1324 supported it with 97 percent and 100 percent approval rates respectively.
Unifor National President Lana Payne expressed satisfaction with the ratified agreement, highlighting the tangible benefits and stability it brings amid challenges facing Canadian autoworkers and the industry at large. The negotiation process aimed at enhancing various aspects for all members, building on previous achievements.
Amidst uncertainties due to U.S. tariffs, evolving trade policies, and slower electric vehicle adoption in North America, the agreement signifies Ford’s acknowledgment of Canada’s significance. Ford’s commitment includes an additional $700 million investment to optimize 5.0-litre engine production at Essex Engine Plant (EEP) and continued support for the expansion of the 7.3-litre engine in Essex. Furthermore, Ford is honoring a pre-planned $550 million investment in its Oakville Assembly Complex.
Ford officials emphasized the company’s enduring dedication to Canada and its workforce. CEO Jim Farley underscored the agreement’s focus on investing in employees and Canada’s future, reinforcing Ford’s manufacturing legacy in Canada and bolstering its competitiveness in the long run.
In addition, Ford has agreed to refrain from selling or closing any Unifor-represented facility during the agreement’s duration. The deal incorporates a $10,000 productivity and quality bonus, a $2,000 December bonus in the first year, enhanced employee benefits like 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.