Canadian Autoworkers Cast Votes on Agreement with Ford


Canadian Autoworkers Cast Votes on Agreement with Ford
Canadian Autoworkers Cast Votes on Agreement with Ford © Getty Images News/Bill Pugliano

Canada’s leading autoworkers union, Unifor, initiated the ratification process for an agreement, deemed "exceptional" by its leaders, with Ford Motor Co. With voting starting on Saturday, the union's leadership unanimously gave the nod to the tentative three-year pact, underscoring its significance.

The highly anticipated results are scheduled to be released on Sunday. Unifor's leadership highlighted the unique context in which these negotiations took place, describing it in a joint statement: “This was an extraordinary round of collective bargaining, taking place in an extraordinary time”.

They went on to explain the multifaceted challenges the workers face, from the looming affordability crisis and high interest rates to the repercussions of a global pandemic and the ongoing supply shortages which have impacted their employment.

Revolutionizing the Auto Sector: What's in the Agreement?

The agreement promises a brighter future for the auto sector in Canada, particularly amidst the significant transformations it's undergoing. It centers on Unifor’s primary concerns, particularly those around pension enhancements and income security provisions.

These elements are especially crucial given the industry’s impending shift towards electric vehicles. Financially, the deal appears to be a significant win for the union members. The agreement lays out a wage augmentation of 10% effective from September 25, in the inaugural year.

This initial boost is followed by subsequent raises of 2% and 3% in the ensuing two years. Beyond just wages, the pact addresses other crucial benefits for both current and past employees. For the first time in almost two decades — since 2005 to be precise — the union successfully secured improvements in pension provisions.

Furthermore, the agreement abolishes health care deductibles for all members, current and past. In a notable gesture of goodwill, it also introduces quarterly remittances, capping at $148, for all retirees who stepped down before October 1, 2023.

Ford Motor Co., for its part, has maintained a respectful silence, opting not to discuss the agreement's details publicly until Unifor completes its internal ratification process. All in all, this agreement not only recognizes the challenges of the present but also gears up to embrace the transformative future of Canada’s automotive landscape.