The union representing workers at Ford Motor plants in Canada said its tentative agreement with the company included “transformative” gains, and one observer said it likely included significant pay increases.
Unifor and Ford reached a preliminary contract agreement Tuesday evening, after extending a previous strike deadline by 24 hours.
“We believe this tentative agreement, approved by the entire main bargaining committee, addresses all of the points raised by members in preparation for this round of collective bargaining,” said Unifor National President Lana Payne. in a press release.
The three-year tentative agreement covers more than 5,600 workers at Ford’s Canadian plants. It includes members from Ford’s Oakville assembly plant, the Annex and Essex engine plants in Windsor, Ontario, as well as its parts distribution centers in Brampton, Paris and Casselman in Ontario and Leduc, in Alberta.
Key union leaders, including Mme Payne, sent a message to union members touting the tentative agreement. “This careful work has resulted in fundamental transformative gains that address our key priorities on pensions, wages and the transition to electric vehicles,” it reads.
Steven Tufts, an associate professor at York University, said he believes Mme Payne wouldn’t risk recommending a deal unless Ford made a substantial offer.
“I think the salary increases will be significant under this agreement,” he said. Mme Payne has likely made some progress investing in the transition to electric vehicles […] and would be able to announce guaranteed investments for the transition to electric vehicles. »
It will remain to be seen, Mr. Tufts added, whether the union rank and file will ratify the agreement, at a time when unionized workers have high expectations regarding bargaining gains – and whether Mme Payne will be able to repeat the success of this agreement in principle at GM and Stellantis.
In addition to increasing wages, Unifor had indicated that its key priorities were pensions and issues related to job security and the transition to electric vehicles.
Formal negotiations between Unifor and the Big Three Detroit automakers opened August 10 in Toronto. The union named Ford as a bargaining target on August 29, then focusing on negotiations with that company to create a model agreement that will be used in negotiations with workers at General Motors and Stellantis.
The last round of contract negotiations with Detroit manufacturers, in 2020, led to multibillion-dollar investment commitments from the companies. Unifor noted that increased momentum for the transition to electric vehicles has brought total promised spending across the Canadian auto sector to approximately $25 billion over the past three years.
An influence in the United States?
Dennis Darby of Canadian Manufacturers & Exporters welcomed the agreement in principle between Unifor and Ford.
“If it is accepted by workers, it will allow the Canadian automotive sector, but also the manufacturing sector more generally, to maintain their activities,” he said in a press release sent by email.
He observed that the current strike in the United States, at some Ford, General Motors and Stellantis plants, was having a significant effect on manufacturers, creating another headwind for an already slowing Canadian economy.
South of the border, the United Auto Workers union entered its sixth day of strike Wednesday, and its president Shawn Fain threatened to extend the work stoppage to other factories if the three Detroit giants did not act. no significant progress by Friday.
Mr. Tufts believes it is possible that Ford reached an agreement with Unifor with the strategic objective of not initiating a strike in Canada, while reducing expectations for the agreement in the United States.
“Ford may have been encouraged to reach a no-strike deal in Canada to alleviate the overall North American conflict,” Tufts said.