Starting wages for workers in Canada will see a significant increase of 22 percent, from $24.26 to $29.67, effective September 25. This includes a fold-in of a $1.21 cost-of-living allowance. For those workers already at the top of the pay scale, wages will rise by 13 percent to $42.39 from $37.33.
(Please note that the Canadian dollar is equivalent to $0.74 USD according to current exchange rates.)
As part of the agreement, workers at all levels of the wage grid will receive an additional 2 to 3 percent increase at the beginning of the second and third years.
The deal also aims to reduce the time it takes for new workers to reach top-end pay. Under the previous collective agreement, new hires started at 65 percent of the maximum pay and it took them eight years to progress to 100 percent. However, with the new tentative deal, new hires will start at 70 percent of the high-end pay and will reach full pay within four years.
Signing Bonus
In addition, active Ford members will receive a signing bonus of C$10,000 ($7,411 USD) for “Productivity and Quality”.
The proposed deal also presents an opportunity for workers hired after 2016 to return to defined benefits pension plans. Current members with defined contribution plans will have the option to switch to a more stable and beneficial defined benefits plan starting January 1, 2025, as per the master bargaining committee.
The tentative deal introduces various improvements to both sets of pension plans.
Ensuring support for workers during retooling periods was one of Unifor’s key priorities in these negotiations. To assist members during shutdowns, the supplemental unemployment base rate will increase from 65 to 70 percent.
Notably, this rate will be maintained throughout the anticipated eight-month retooling period for the Oakville Assembly Complex, scheduled to begin next year.
Promises of Production
In addition to the existing C$1.8 billion ($1.3 billion) investment commitment for the Oakville plant, the tentative deal also includes undisclosed spending in Windsor.
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