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Canadian Labor Union Ratifies New Contract with Ford Motor, Avoiding Strikes

by Hashem Ali
September 24, 2023
in Business
2 min read
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Canadian Labor Union Ratifies New Contract with Ford Motor

Canadian labor union Unifor announced on Sunday that its members have voted to approve a new contract with Ford Motor. This comes as a relief for the Detroit automaker, which is currently engaged in a separate dispute with its U.S. union regarding better pay and benefits in the country.

Unifor, representing approximately 5,600 Canadian auto workers, confirmed that its members at Ford have ratified a new three-year collective agreement.

The new contract offered by Ford includes wage increases of up to 25% for union members. It features a 10% wage increase for the first year, followed by 2% and 3% increases in the second and third years, respectively. Additionally, all active employees will receive a $10,000 productivity and quality bonus.

Earlier this week, Ford reached a last-minute deal to avert walkouts at its Canadian operations. Meanwhile, the United Auto Workers (UAW) union in the U.S. announced an expansion of strikes against General Motors and Stellantis.

While progress has been made in talks with Ford, the UAW stated that its workers will continue to strike at the automaker’s assembly plant in Wayne, Michigan.

Unifor’s negotiations with Stellantis and General Motors are ongoing, as the union seeks improved wages and pensions, support in transitioning to electric vehicles, and additional investment commitments from the two companies.

Ford’s new contract covers Unifor members at its plants in Ontario, as well as its parts distribution centers in Bramalea, Paris, Ontario, and Alberta.

In contrast to the UAW, Unifor chose Ford as its initial negotiation target, using a pattern bargaining tactic to set the tone for future deals with other companies.

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