Ford Faces Potential Canadian Strike Parallel To UAW Impasse

Ford Motor Company F could encounter further labor challenges as the Canadian union Unifor races against the clock to reach an agreement with the automaker before an extended deadline of 11:59 p.m. ET Tuesday. This situation has the potential to impact the production of certain pickup trucks in the United States.

This development reported by CNBC follows the United Auto Workers’ strikes against Ford and its competitors General Motors Co. GM and Stellantis N.V. STLA in the U.S.

The looming Canadian strike could disrupt operations at Ford’s Oakville Assembly Plant, responsible for manufacturing the Ford Edge and Lincoln Nautilus crossovers. Additionally, it could affect two engine plants that produce V8 gasoline engines used in the Ford F-Series Super Duty, F-150 pickups and the Mustang muscle car.

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If Unifor initiates the strike, it would be a historic event, marking the first time both unions have simultaneously gone on strike against a Detroit automaker over national contracts. Negotiations continue after the initial deadline extension of 24 hours, prompted by a “substantive offer” from Ford.

A prolonged Canadian strike has the potential to impact U.S. vehicle production contingent on Ford’s engine stock and the company’s emphasis on non-V8 gasoline engine models. Approximately 50% of Mustang and 20% of F-150 models sold in the U.S. are equipped with gasoline V8 engines.

Unifor, representing 18,000 Canadian workers at Detroit automakers, has chosen a more conventional approach to negotiations compared to the UAW. There are reported disparities between the union and Ford concerning key issues such as wages and pensions.

Despite the risk of ongoing strikes and production disruptions, shares of Ford Motor Co. were 1.87% higher on Tuesday.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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