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 annual salary hikes of three percent, 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 governed 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 stated that the ratified agreement secures significant benefits and stability for members amid industry challenges.
The agreement was reached amidst challenges faced by North American automakers due to U.S. tariffs, trade policy uncertainties, and slower electric vehicle adoption rates. Unifor Local 200 President John D’Agnolo emphasized Ford’s recognition of Canada’s importance, attributing it to the strong Ford vehicle sales in Canada.
As part of the deal, Ford will allocate an additional $700 million to enhance its 5.0-liter engine production at Essex Engine Plant (EEP) and support the expansion of the 7.3-liter engine in Essex. Moreover, Ford will fulfill a previously planned $550 million investment in its Oakville Assembly Complex during the contract period.
Ford officials highlighted the company’s commitment to Canada, expressing that the agreement focuses on investing in the workforce and the country’s future. CEO Jim Farley affirmed that the agreement, coupled with ongoing investments in Oakville, Windsor, and Essex, reinforces Ford’s manufacturing legacy in Canada and enhances its competitive position.
Additionally, Ford has agreed to refrain from selling or shutting down any facility represented by Unifor for the contract’s duration. The deal includes a $10,000 productivity and quality bonus, a $2,000 December bonus in the first year, and enhancements to the employee benefits plan. Ford will also provide retirement incentives and increased allowances for psychological services, orthodontics, and vision care to eligible members.