As Detroit-based automaker Ford Motor Co F continues to reel under the impact of the United Auto Workers (UAW) union's strike in the U.S., Canada's Unifor union has ratified a new agreement with Ford of Canada.
What Happened: Unifor said on Sunday that a majority of its Ford members voted in favor of a new three-year collective agreement with Ford of Canada that includes a base hourly wage increase of up to 25%. Under the new contract, general wages would increase 10%in the first year, 2% in the second and 3% in the third.
Other key updates in the new contract include reactivation of cost of living allowance, improvements to pension plans, investment for Essex Engine Plant and protections during the transition to EVs. It also paves for $10,000 productivity and quality bonus for full-time employees. For temporary, part-time employees, this bonus has been capped at $4,000.
Unifor opened negotiations with all three Detroit automakers- Ford, General Motors Co GM,
and Stellantis NV STLA in early August for better pay and pensions. However, it decided to concentrate on Ford on nearing contract expiry. Once a collective agreement is reached with Ford, it can set the ground for contracts with the other two, it then said.
Now that an agreement has been concluded with Ford, the union will announce the next target company for negotiations ‘in the near future,’ the union said in a statement.
The UAW union's simultaneous strike against the Detroit three in the U.S. kickstarted on Sept. 15 at midnight and has completed ten days thus far.
Last Friday, the union expanded its strike to add more assembly plants and distribution centers belonging to General Motors and Stellantis. They have limited the strike against Ford to the Michigan assembly plant citing progress in negotiation talks.
Ford said on Friday that though the two parties are making progress in some areas, there are still ‘significant gaps’ on key economic issues. “In the end, the issues are interconnected and must work within an overall agreement that supports our mutual success,” the company said in a statement.
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