Unifor, the Canadian auto workers union, says its new three-year deal with Ford Motor Co. “Very significantly delivers” on members’ priorities around pensions, wages and employment in switching to electric vehicles, with workers at the highest level. They are poised to see their wages increase by more than 19% over the term of the agreement.
The deal includes the largest overall wage increase negotiated in Unifor and the history of the Canadian Auto Workers union, with increases of 10 per cent in the first year, 2 per cent in the second year, and 3 per cent in the third year. The wage increase will bring the production member from $24.26 per hour in Canadian dollars to $29.67 per hour in the first year of the agreement.
Over the term of the agreement, senior employees will see their hourly wages rise from C$37.33 to C$44.52, an increase of 19.2%. The Canadian dollar is equivalent to 74 cents in US currency.
The deal affects 5,600 Ford workers at three Ontario plants: Oakville Assembly in Oakville, Essex Engine and Windsor Engine, both in Windsor across the river from Detroit. Workers in distribution centers are also affected by the agreement. Voting on the deal began at 10 a.m. on Saturday and ends at 10 a.m. on Sunday.
“To respect the certification process, we will not discuss the details of the initial agreement,” Saeed Deeb, a Ford spokesman, told the Detroit News. Details of the deal were revealed as UAW members entered a ninth day of strike action at select facilities of Ford, General Motors Co. and Stellantis NV.
Aside from the big wage gains, the Canadian union has won new investment for its Essex Engine plant. Ford will add additional capacity to support production of the 7.3-liter V-8 engine there. Facility upgrades in Essex should begin in late 2025 with launch planned for the first quarter of 2028.
Ford agreed to renew its commitment not to close facilities for the duration of the agreement. It is also recommitting to its plans to convert the Oakville complex into an Oakville electric vehicle park. In April, the Dearborn automaker said it would invest $1.3 billion (C$1.8 billion) to convert the plant to assemble several electric vehicles and battery packs. Details have not been released about the vehicles that will replace the gas-powered Ford Edge and Lincoln Nautilus midsize SUVs currently manufactured in Oakville.
Ford’s plan is to launch the first electric car in Oakville in 2025.
To support the transition to electric vehicles, Unifor has negotiated “special transition measures” with Ford, which focus on Ford’s Oakville plant. The measures, which will be in place during the next plant retooling period and up to eight months after shutdown, focus on securing income during the transition period.
Unifor was also able to negotiate the time it takes to reach the highest pay rate to be cut in half to four years.
Other wage gains include:
- Special amendment for skilled trades in the first and third years of the contract.
- Skilled workers will receive two additional wage adjustments: a 2.75% adjustment in the first year – on top of a 10% general wage increase – and 2.5% in the third year, on top of a 3% general wage increase. It will rise from $44.77 to $55.97 per hour by the end of the agreement.
- A cost-of-living increase of $1.21 per hour upon ratification with additional adjustments in the second and third years of the agreement up to a maximum of $2 over the term of the agreement.
- A $10,000 productivity and quality bonus paid to each full-time employee (not including part-time temporary workers) upon certification – representing the largest production and quality bonus the union has ever negotiated.
- Eligible part-time temporary workers will receive a $4,000 bonus on the Monday following certification.
The union notes that a “key achievement” has been improved pension security for members since there have been no negotiated pension increases at Ford since 2005. Workers hired after November 7, 2016, who have a defined contribution plan, will be included in the College of Arts Applied Technology Defined Benefit Plan, a multi-employer fund.
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