Canada’s autoworkers at Ford Motor Co. facilities will see generous raises, bonuses and job security in a new tentative three-year contract agreement if the workers ratify it during voting on July 18 and July 19.
Unifor, the union that represents Canada’s autoworkers, released details of the tentative contract wins with Ford on July 18 and if ratified, it will cover some 5,150 union members employed at Ford’s factories in Canada.
Unifor chose to negotiate with Ford first and will take a ratified contract to General Motors and Stellantis to use as template in talks with the other two automakers.
In short, the tentative agreement, which Unifor posted on www.autotalks.uniforautohub.ca on July 18, will give Unifor’s members an annual 3% wage increase each year for three years; a $12,000 annual bonus the first year; cost of living adjustments each quarter; job security because Ford has promised to make investments at Essex Engine and Oakville Assembly plants; improved quarterly payments to retirees and pension gains, and more. Ford also agreed to not close or sell any facilities during the life of the contract.
“Everything in this agreement was won despite significant odds against us,” Unifor leaders wrote in a letter to its members that was posted on the Autotalks site. “This deal delivers gains for every union member and sets the pattern we can carry to General Motors and Stellantis. Canadian autoworkers know a lot about bargaining in hard times. We have bargained through recessions, restructurings and trade deals designed to break us, and our union has always stood strong.”
The current contact Unifor has with the Detroit Three automakers expires at 11:59 p.m. Sept. 20. Unifor and Ford started negotiating a new contract on June 22 with Unifor setting a target date of July 10 to have a deal. Unifor alerted the media it had reached the tentative agreement late July 11.
The union expects to have vote results by late afternoon or early evening on July 19.
Wage gains puts workers over $50 an hour
In the contract highlights, Unifor said that production employees’ base wages will grow to more than $50 an hour over the life of the tentative agreement. Skilled trades workers’ base wages grow to more than $62 an hour.
Here is how it breaks out: Prior to the first 3% wage increase on Sept. 21, all members will get a $1.42 an hour cost-of-living adjustment (COLA) added to their wages. That means a production worker making $44.52 an hour, will go up to $45.95 an hour. By the end of the year, when the 3% raise kicks, the worker will be making $47.32. For a skilled trades employee making $55.97 an hour currently, their wage rises to $59.11 by year-end after the COLA adjustment and 3% raise.
In year two, a production worker can expect wages — after COLA adjustments and a 3% raise — to result in an hourly wage of $48.74 and skilled trades hourly wage rises to $60.88. By year three, a production worker will see wages rise to $50.20 and skilled trades wage will rise to $62.71.
Eligible members will receive eight quarterly COLA adjustments over the collective agreement, beginning with the pay period Sept. 6, 2027. COLA will continue to be capped at $2 an hour just as it was during the 2023 agreement, but the union stated the estimated wage increases and COLA adjustments will outpace forecasted inflation.
The hourly rate of pay for temporary part-time employees will also increase from $31.16 to $34.07 in the first year starting in September and rise to $35.09 in the second year and then $36.14 in year three. They will also receive a $2,000 bonus.
Other contract highlights
The union also negotiated a lump sum bonus of $10,000 for full-time employees who qualify. Additionally, all active and inactive full-time workers will receive a one-time bonus payment of $2,000 prior to the December 2026 holiday period.
The contract states that employees at Oakville Assembly Plant, where Ford will soon start building the F-Series Super Duty pickups, “who are on indefinite layoff as of the Monday following notice of ratification, and who would otherwise not qualify for the Productivity and Quality bonus, will receive a $10,000 Special Payment.” Fords build the Super Duty at Kentucky Truck Plant in Louisville, Kentucky, as well.
When taken all togther, between the wage gains, COLA and bonuses, Unifor said a production employee will make $29,547 more across the next three years with this contract. A skilled trades member will see gains of $33,920.
Also, starting Jan. 1, 2027, the Defined Benefit Pension Monthly Basic Benefit Rate will increase by $3, meaning if a person’s current monthly basic benefit is $73.60, it goes to $76.60.
Ford Investments
The contract states that Ford agreed to invest $500 million in its Windsor Operations over the life of the contract to maximize the 5.0L engine and machining capacity at Essex Engine Plant, which makes engines for Ford’s F-Series. Ford’s production of the 7.3L engine is planned to continue through the life of the agreement, with the previouslyannounced balance out of the 6.8L engine occurring in third quarter at Windsor Engine Plant this year.
At Essex, the production of the 5.0L and 7.3L engines is expected to continue throughout the life of the agreement. Additionally, the contract states that an additional shift in engine assembly is forecasted for 2029 based on estimated market demand.
Ford also agreed to invest $400 million to retool the Oakville Assembly complext to include a new stamping operation. Production of the Super Duty there is expected to start in the third quarter and continue through the life of the agreement, Unifor said.
Hard fought wins
The union entered talks knowing it would likely not win the same 2023 record-setting wage gains this time around given the economic uncertainties. But members were seeking fair economic progress on wages and pensions, the promise of products for job security and the union said it will not make concessions in this next contract.
In the states, the UAW’s contract with Detroit automakers does not expire until May 1, 2028, but the union and lawmakers are watching that Unifor wins closely.
In fact, ahead of negotiations, as the Detroit Free Press reported last month, Payne had called the talks “the most consequential” of Unifor leaders’ lifetimes. That’s because of the challenges the auto industry faces this year as the United States Mexico Canada Agreement continues unchanged, the U.S. war in Iran remains unresolved and there continues to be 25% tariffs put in place by President Donald Trump for all vehicles and car parts imported into the United States.
“All of this makes for what will be the most consequential round of Detroit Three auto negotiations in our lifetimes,” Payne said in a previous report. “(President) Trump wasn’t bluffing. He was coming for our jobs. Investment would be impacted. Companies would respond in ways that would be detrimental to our members.”
That’s because automakers are diverting billions of dollars to pay for tariffs rather than investing the money in Canadian plants, products, or workers, Payne said.
The tentative agreement, if ratified, will cover members who work at the Oakville Assembly Complex, Windsor Annex and Essex Engine Plants, and Parts Distribution Centres in Paris and Casselman in Ontario and Leduc, Alberta.
Jamie L. LaReau is the senior autos writer for USA TODAY Co. who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
This article originally appeared on Detroit Free Press: Ford promises Canada’s autoworkers raises, bonuses and job security
Reporting by Jamie L. LaReau, Detroit Free Press / Detroit Free Press
USA TODAY Network via Reuters Connect
By Jamie L. LaReau, Detroit Free Press | USA TODAY Network
