The labor union representing over 5,000 employees at Ford Motor Company of Canada has officially approved a new three-year collective bargaining agreement. The agreement entails a three percent annual wage increase, the continuation of a cost-of-living allowance (COLA), and an earmarked $1.2 billion investment in Canadian manufacturing, as disclosed by both the union and the company.
Unifor Ford members governed by the master agreement voted 74 percent in favor of the deal, with salaried bargaining unit members at Locals 240 and 1324 voting 97 percent and 100 percent respectively. Unifor National President Lana Payne expressed satisfaction, stating, “Our members have endorsed a robust agreement that secures tangible benefits and essential stability amidst unprecedented challenges confronting Canadian autoworkers and the industry as a whole.”
The agreement is signed at a crucial juncture for North American automakers grappling with U.S. tariffs, trade policy uncertainties, and slow electric vehicle adoption rates in the region. Unifor Local 200 President John D’Agnolo highlighted the union’s success in securing gains for its members despite external pressures, emphasizing Ford’s acknowledgment of Canada’s significance.
As part of the deal, Ford commits an additional $700 million to enhance 5.0-liter engine production at Essex Engine Plant (EEP) and support the expansion of the 7.3-liter engine in Essex. Additionally, Ford is honoring a pre-planned $550 million investment in its Oakville Assembly Complex over the agreement’s duration, demonstrating the company’s enduring commitment to Canada.
Ford officials reiterated their dedication to Canada’s future through the agreement, with CEO Jim Farley affirming, “This agreement signifies investing in our workforce and Canada’s long-term prosperity.” The agreement also includes a moratorium on the sale or closure of any Unifor-represented facility during the agreement’s lifespan, along with bonuses and improved employee benefits.
In light of the ratified agreement, Ford’s ongoing investments in Oakville, Windsor, and Essex underscore a legacy of manufacturing leadership in Canada, positioning the company for sustained competitiveness and success in the years ahead.
