The union representing over 5,000 hourly workers at the Ford Motor Company of Canada, Unifor, announced that its members have overwhelmingly approved a three-year agreement with the automaker. The vote reflected strong support, with 74 percent of members under the master agreement in favor, while local chapters recorded even higher approval rates of 97 percent and 100 percent, respectively.
Under the new deal, employees will benefit from a general wage increase totaling nine percent over the agreement's duration, along with additional salary increments. The agreement also stipulates that Ford will make significant investments, amounting to $1.25 billion, across its Canadian manufacturing operations.
Bev Goodman, president and CEO of Ford Canada, emphasized that the agreement acknowledges the skills of the workers and strengthens the company's long-standing commitment to Canada, which spans over 122 years. Similarly, Unifor national president Lana Payne characterized the deal as a “strong agreement” delivering “real gains and much-needed stability” amidst the “unprecedented challenges” confronting Canadian autoworkers and the broader automotive industry.
Payne noted that there were many who underestimated the resilience of the industry and its workers. She stated, “This round of auto bargaining was about making progress for our members, but also it was about sending a message that we are not going anywhere.”
The newly ratified agreement, effective from September 21, includes a ratification bonus of $10,000 for eligible full-time, permanent employees and a $2,000 bonus for temporary employees. Furthermore, it introduces enhancements to employee benefits and improves retirement programs, including increased pension benefit rates.
The contract also renews a no-closure agreement and program commitments across all Ford facilities. This includes plans for a third shift at the Essex engine plant, slated for 2029. Specifically, the financial investment of $1.25 billion mentioned in the agreement encompasses $700 million aimed at optimizing the production of 5.0-litre engines at the Essex Engine Plant, in line with the anticipated third shift. Additionally, the agreement supports the ongoing expansion and production of the 7.3-litre engine in Essex, alongside a predetermined investment of $550 million for the Oakville Assembly Complex.
Negotiations for this agreement commenced on June 22, coinciding with the expiration of contracts at all three major American automakers. The strategic decision by Unifor to negotiate with Ford first mirrors a similar approach taken during the previous round of discussions in 2023.
This agreement marks a significant development in labor relations within the Canadian automotive industry, reflecting both the strength of the union and the commitment of Ford to invest in its Canadian workforce and manufacturing capabilities.
