The labor union representing over 5,000 employees at Ford Motor Company of Canada has officially approved a new three-year collective contract. This agreement entails a three percent yearly salary increase, the continuation of a cost-of-living allowance (COLA), and $1.2 billion earmarked for Canadian manufacturing investments, as disclosed by both the union and the corporation.
According to details shared by the union, Unifor Ford members under the master agreement supported the deal with a 74 percent approval rate, while salaried bargaining unit members at Locals 240 and 1324 voted 97 percent and 100 percent in favor, respectively. Unifor National President Lana Payne expressed satisfaction with the ratified agreement, highlighting the tangible benefits and stability it provides amidst the challenges faced by Canadian autoworkers and the industry as a whole.
The negotiation process, conducted amidst crisis conditions, aimed to build upon the previous gains achieved in 2023 and introduce numerous enhancements for all members. The agreement’s approval is significant given the uncertainties caused by U.S. tariffs, evolving trade policies under the Trump administration, and the slower-than-expected adoption of electric vehicles in North America.
Emphasizing the importance of Canada to Ford, Unifor Local 200 President John D’Agnolo noted the company’s historical ties to the country and the strong consumer support for Ford vehicles in Canada. As part of the ratified deal, Ford has committed an additional $700 million to enhance production at the Essex Engine Plant and support the expansion of engine production in Essex. Additionally, a planned $550 million investment in the Oakville Assembly Complex will proceed as scheduled.
Ford officials underscored the company’s enduring commitment to Canada through this agreement, highlighting investments in its workforce and future prospects in the country. CEO Jim Farley emphasized the long-standing manufacturing leadership Ford has demonstrated in Canada and the strategic positioning for future success with these investments.
In a significant move, Ford has agreed to a moratorium on any sale or closure of Unifor-represented facilities during the contract’s duration. The agreement also includes a $10,000 productivity and quality bonus, a $2,000 December bonus in the first year, and enhanced benefits such as increased allowances for psychological services, orthodontics, and vision care. Furthermore, retirement incentives of $50,000 will be offered to eligible members at Ford’s Windsor Operations and Parts Distribution Centres.