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Canada Unifor members ratify Ford contract with wage hike, investments

Breana Noble, The Detroit News on

Published in Business News

Ford Motor Co. autoworkers in Canada represented by labor union Unifor on Sunday ratified a three-year contract that secures 3% annual wage increases and $900 million in investments.

The new agreement that takes effect Sept. 21 covers 5,150 employees at the Dearborn automaker's Canadian operations and sets the bargaining pattern for deals at the other Detroit Three — General Motors Co., and Jeep and Chrysler maker Stellantis NV. Unifor has acknowledged it has bigger fights with both companies currently idling plants in Canada from tariffs and less-than-expected electric vehicle demand. The union didn't disclose which company would be the next target.

Ford's idled Oakville Assembly Complex is set to launch Super Duty truck production before the end of the year, and Unifor leaders said the agreement puts Ford members in a solid position for the next three years.

“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 a statement. “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.”

Ford committed to $500 million investment for facility and tooling for operations in Windsor, Ontario, and $400 million to support Super Duty production at Oakville. The deal renews a no closure agreement, program commitments at all Ford facilities and adds a third shift for the 7.3-liter engine at the Essex Engine plant forecasted for 2029.

“This agreement is about investing in our people and Canada's future," Ford CEO Jim Farley said in a 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."

He added that an interconnected North American ecosystem is critical for Ford's competitiveness and a revised United States-Mexico-Canada trade agreement is critical for fending off advantages enjoyed by imported vehicles from South Korea and Japan.

 

The annual wage hikes are the largest uplift in Ford of Canada history, according to the automaker. That will bring full-rate operator wages to $35.83 (50.20 Canadian dollars) per hour and skilled trades wages to $44.76 (62.71 Canadian dollars) per hour by the end of the agreement. It also secures renewal of a cost of living allowance added in 2023 and a pathway to full employment for laid-off workers at Oakville by July 1, 2027.

Full-time eligible members also will receive a more than $7,000 (10,000 Canadian dollars) productivity and quality bonus — a record ratification check, according to Ford, and temporary workers will receive almost $2,900 (4,000 Canadian dollars). A more than $7,000 special payment will go to those on indefinite layoff from Oakville. And Ford will distribute a nearly $1,500 (2,000 Canadian dollars) bonus in December.

The deal also includes increases in Retirees Universal Healthcare Allowance payments and extend payments to include a surviving spouse.

Unifor Ford members voted 74% in favor of the contract. Salaried members at Locals 240 and 1324 voted 97% and 100%, respectively.

“There are many who counted us out, who wrote our industry, our autoworkers, and our union off," Payne added. "Those who said we should just accept Trump’s goal of eliminating us. This contract shows we refuse to be counted out."

The new contract expires Sept. 19, 2029. United Auto Workers' contracts with the Detroit automakers expire in May 2028.


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