Ford Motor of Canada and trade union federation Unifor have ratified a new three-year labour agreement, committing C$1.25bn ($891.3m) to Canadian manufacturing investment.
The contract applies to over 5,000 hourly staff represented by Ford-Unifor and provides for a 9% general wage rise spread across the agreement’s duration
Full-time permanent staff who qualify will receive a C$10,000 ratification payment, and temporary staff will receive C$2,000. Pension benefit rates will also rise, alongside other benefit enhancements and a revised starting wage for new employees under the hire progression schedule. Of the total, C$700m is earmarked for the Essex Engine Plant in Windsor, Ontario, aimed at increasing output of the 5-litre engine, with plans for a possible third production shift, as well as sustaining production growth of the 7.3-litre engine.
This comes on top of an already-confirmed C$550m for the Oakville Assembly Complex over the course of the agreement. Ford Motor CEO Jim Farley said: “This agreement is about investing in our people and Canada’s future. “With this agreement and our continued investments in Oakville, Windsor and Essex, we are building on more than a century of manufacturing leadership in Canada and strengthening Ford’s ability to compete and win for years to come.” The latest funding adds to Ford’s earlier C$5bn investment that transformed Oakville Assembly Complex into its Super Duty assembly site and brought the company’s first stamping operations to Canada. Together with close to C$4bn spent across Ford’s Canadian sites over the last ten years, the new agreement continues what the company refers to as 122 years of manufacturing presence in the country.