The labor union representing over 5,000 employees at Ford Motor Company of Canada has officially approved a new three-year collective bargaining agreement. This agreement entails annual wage hikes of three percent, the continuation of a cost-of-living allowance (COLA), and a planned investment of $1.2 billion in Canadian manufacturing, as disclosed by both the union and the company.
Unifor Ford members covered by the master agreement voted 74 percent 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, highlighting the tangible benefits and stability it provides amid unprecedented challenges faced by Canadian autoworkers and the industry as a whole. Negotiating under crisis conditions was challenging, but the primary objective was to enhance various aspects for all members, building on previous gains.
The agreement’s approval is significant amid the automotive industry’s struggles with U.S. tariffs, trade policy uncertainties, and slower-than-expected electric vehicle adoption in North America. Unifor Local 200 President John D’Agnolo emphasized that despite these challenges, gains were secured for members due to Ford’s recognition of Canada’s importance as a market.
As part of the deal, Ford has committed an additional $700 million to boost its 5.0-liter engine production at Essex Engine Plant and to support the expansion of the 7.3-liter engine in Essex. Furthermore, Ford will honor its planned $550 million investment in the Oakville Assembly Complex over the agreement’s lifespan, reinforcing the company’s dedication to Canada.
Ford officials stated that the agreement signifies an investment in both the workforce and the future of Canada. CEO Jim Farley underscored the commitment to manufacturing excellence in Canada, positioning Ford for sustained competitiveness and success in the years ahead.
The agreement also includes a moratorium on facility sales or closures, a $10,000 productivity and quality bonus, a $2,000 December bonus in the first year, enhanced employee benefits such as increased allowances for psychological services, orthodontics, and vision care, as well as retirement incentives for eligible members at Ford’s Windsor Operations and Parts Distribution Centres.
