Ford Offers Canadian Autoworkers Wage Increases Of Up to 25%

Ford Motor Co.'s tentative labor deal with some 5,600 Canadian autoworkers includes immediate wage increases of up to 25% and investments to help the transition to electric vehicle production.

Unifor, Canada's largest labor union, represents about 18,000 autoworkers across facilities operated by Ford, General Motors and Stellantis in Canada. The union had previously picked Ford as its target company and will use the labor contract as foundation in its negotiations with the other two automakers.

The news comes as the UAW this week reported making some progress in its U.S. talks with Ford, which it did not target with additional work stoppages at parts distributors as it did with GM and Stellantis.

The agreement in Canada provides general wage increases of 10% in the first year of the contract and adds a 2% wage hike in the second year, followed by a 3% wage hike in the final year of the contract. Production workers currently making $24.26 per hour in Canadian dollars would make $29.67 per hour in the first year of the contract, if it is approved.

Ford will also pay a $10,000 productivity and quality bonus to all employees on active payroll, according to Unifor. The agreement also includes cost-of-living increases, increased pension benefits and reduces the time it takes for workers to reach the top levels of the automaker's tiered wage scale, among other benefits.

“This three-year deal meets the extraordinary moment we are in. It addresses each of our core priorities and provides significant, and in some cases ground-breaking, gains for everyone — active and retired,” Unifor President Lana Payne, joined by other officials, wrote in a note to members.

Ford also agreed to "special transition measures" to support the transition to EVs at Ford's Oakville plant, which largely focus on income security after the transition. The automaker will also upgrade its Essex Engine Plant to add capacity to build the 7.3-liter engine; the upgrades will take about three years, beginning in 2025, with production scheduled to begin in the first quarter of 2028.

The tentative agreement was first accepted by the union's top brass on Tuesday night; Unifor had extended negotiations for an additional 24 hours after contracts expired at midnight on Monday after Ford made a "significant" offer. The leaders of all Unifor Ford locals unanimously voted to support the tentative agreement on Friday, according to the union.

Now, the 5,600 Unifor members employed by Ford will have to vote on whether to ratify the agreement. Members will begin voting on Saturday, with the tally expected to be released on Sunday, according to Unifor.

The initial agreement came nine days into the ongoing strikes against Ford, GM and Stellantis by the United Auto Workers union, which on Friday escalated its strike plans to include 38 parts distribution centers across GM and Stellantis plants in the U.S.

More than 18,000 UAW members are now on strike against the three automakers, although Ford's Wayne, Michigan, assembly complex is its only struck facility. On Friday, UAW President Shawn Fain praised Ford's willingness to bargain with the union, although he added that negotiations are far from over.