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The union representing more than 5,000 workers at Ford Motor Company of Canada has ratified a new three-year collective agreement.
The deal includes wage increases of three per cent per year, renewal of a cost-of-living allowance (COLA) and $1.2 billion in planned investments in Canadian manufacturing, according to details released by both the union and the company.
Unifor Ford members covered under the master agreement voted 74 per cent in favour of the agreement, the union said in a news release issued Sunday. Salaried bargaining unit members at Locals 240 and 1324 voted 97 per cent and 100 per cent respectively.
“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,” said Unifor National President Lana Payne in the release.
“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.”
The deal comes at a time when North American automakers have been dealing with the fallout from U.S. tariffs, uncertainty caused by the Trump administration’s shifting trade policies and slower-than-expected adoption of electric vehicles in North America.
Unifor Local 200 President John D’Agnolo told CBC’s Windsor Morning that the union was successful in making gains for members in spite of those pressures because Ford recognizes the importance of Canada.
“Canadians buy Ford Motor vehicles,” D’Agnolo said.
‘Why wouldn’t you invest in a country that supports you?’
“One of the number one selling vehicles sold in Canada is the Ford truck … That’s why they look at investing here. And they’ve always thought of Canada as family because they’ve been part of the family for years and years and years.
“So why wouldn’t you invest in a country that supports you?”
As part of the agreement, Ford is committing an additional $700 million to maximize its 5.0-litre engine production at Essex Engine Plant (EEP) — including a forecasted third shift — and to support continued expansion and production of the 7.3-litre engine in Essex, Ford said in a news release.
It is also following through on a previously planned investment of $550 million in its Oakville Assembly Complex over the life of the agreement.
The deal reinforces Ford’s long-term commitment to Canada, Ford officials said in the news release.
“This agreement is about investing in our people and Canada’s future,” CEO Jim Farley said in the statement.
“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.”
Collective bargaining talks kicked off Monday morning between Ford and Canada’s largest private sector union, which says it is anticipating the “most consequential round of auto bargaining” in its history.
Ford has also committed to a moratorium on the sale or closure of any Unifor-represented facility, in whole or in part, during the life of the agreement, the union said.
The deal comes with a $10,000 productivity and quality bonus and a $2,000 December bonus in the first year of the agreement, Unifor said.
There are improvements to the employee benefits plan, including increased allowances for psychological services, orthodontics, and vision care, according to details published by the union.
The company will also offer one-time $50,000 retirement incentives for up to 127 eligible members at Ford’s Windsor Operations and Parts Distribution Centres.
