- Ford employees in Canada have overwhelmingly approved a new contract.
- Members will get a 9% pay increase as well as a bonus of up to $10,000 CAD.
- Ford is ramping up V8 production in Essex and will add a third shift in 2029.
Canada’s Unifor union has voted overwhelmingly in support of a new three-year collective agreement with Ford. The deal was struck earlier this month, and 74% of members voted in favor of the contract.
Hourly workers stand to benefit as Ford Canada said they’ll receive a 9% wage increase over the course of the agreement, which takes effect September 21 and expires September 19, 2029.
More: Detroit Automakers Slashed Canadian Production, Setting Up Tense Union Talks
Full-time permanent employees will receive a $10,000 CAD ($7,101 USD) bonus, while temporary employees will receive only $2,000 CAD ($1,420 USD). Ford said the agreement also calls for increased pension and employee benefits as well as an adjusted starting wage for new hires.
Unifor went into more detail and noted that full-rate production workers’ wages will increase to $50.20 CAD ($35.64) per hour by the end of the agreement, while skilled trades workers get $62.71 CAD ($44.53) per hour.
On top of that, the contract includes a cost of living allowance as well as increased Retirees Universal Healthcare Allowance payments, and payments to surviving spouses. The union also mentioned aid for laid-off Oakville Assembly workers, including a $10,000 CAD ($7,101 USD) “special payment” and a program that provides them with a “pathway to full employment with a target completion date of … July 1, 2027.”
Canadian Investments
Besides worker-level benefits, the agreement calls for the Blue Oval to invest $1.25 billion CAD ($888 million USD) into Canada. This includes a previously planned investment into Oakville Assembly as well as $700 million CAD ($497 million USD) in new spending at the Essex Engine Plant. The latter funds will be used to “maximize” production of the 5.0-liter V8 as well as support the continued production and expansion of the 7.3-liter V8. The facility is also scheduled to add a third shift starting in 2029.
Ford CEO Jim Farley said, “This agreement is about investing in our people and Canada’s future.” He added, “With this agreement and our continued investments in Oakville, Windsor and Essex, we’re building on more than a century of manufacturing leadership in Canada and strengthening Ford’s ability to compete and win for years to come.”
The executive also expressed his support for the United States-Mexico-Canada Agreement as he said, “A strong, integrated North American manufacturing system is essential to our competitiveness, and a revised USMCA is critical to fending off the cost and currency advantages enjoyed by imported vehicles from Korea and Japan.”
Unifor National President Lana Payne stated, “Our members have ratified a strong agreement that delivers real gains and much needed stability despite unprecedented challenges facing Canadian autoworkers and the entire industry.” She went on to note “negotiating during a crisis is never easy, but our driving goal was to make a wide range of improvements for all of our members building on the gains made in 2023.”
With the Ford deal approved, attention will now turn to General Motors and Stellantis. Unifor will likely be seeking similar gains from them as well as a commitment to new products built in Canada.
