Members of the Canadian union Unifor’s bargaining committee posed for a celebratory photo in Toronto on Wednesday after negotiating a tentative labor agreement with Ford Motor Company. Union members are voting on the deal this weekend. Photo Courtesy Unifor
Sept. 23 (UPI) — Unionized Canadian auto workers have commenced voting on an unprecedented labor deal with Ford Motor Company that will result in a 15% wage increase over a span of three years, making it one of the largest wage increases ever negotiated in the industry.
The voting, involving thousands of Unifor members, will continue until 10 a.m. EDT on Sunday.
The union managed to reach a tentative agreement just in time to avoid a potential strike.
Initially, the collective bargaining agreement between the union and Ford was set to expire on Monday, but negotiations were extended to finalize the tentative deal.
The agreement includes the first cost of living increase since 2008. It also addresses Unifor’s top four priorities – pensions, wages, the transition to electric vehicle manufacturing, and investment.
Recently released details of the agreement reveal that unionized production workers will receive a 10% raise in the first year of the contract, with subsequent raises of 2% and 3% in the following years. This will result in an hourly wage of $44.50 by the third year, an increase from the previous $37.
“This agreement is incredibly generous, potentially making it the most lucrative deal in the history of the Canadian union,” said Jim Stanford, an economist at the Vancouver-based Center for Future Work, during an interview with the Globe and Mail.
Skilled trades workers will receive additional raises of 2.75% in the first year, with further 2.5% boosts each subsequent year. Their hourly rate will peak at $56 during the final year of the contract.
“We believe that this tentative agreement, which has the endorsement of the entire master bargaining committee, addresses all of the concerns raised by our members leading up to this round of collective bargaining,” said Unifor President Lana Payne on Wednesday.
Unifor’s next focus is to negotiate new labor contracts with General Motors and Stellantis, the parent company of Jeep, Ram, Dodge, Chrysler, and Fiat.
Meanwhile, members of the United Auto Workers union in the United States are currently on strike, awaiting a new contract with GM and Stellantis.
