Saturday, 18 January 2025
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AutomobilesBusiness

Autoworkers in Canada endorse a labor agreement with Ford

  • A tentative three-year agreement between Ford and Canada‘s Unifor autoworkers union has been approved.
  • The agreement reached by Unifor meets the organization’s fundamental demands.
  • All current and past employees are exempt from the health care deductible under the agreement.

A tentative three-year agreement between Ford and Canada’s Unifor autoworkers union has been approved. Last week, an agreement was reached at the eleventh hour to avert a potential strike.

Only 54% of rank-and-file members voted to ratify the agreement, which Unifor dubbed “exceptional,” despite it receiving universal support from local union leadership. As workers struggle with a crisis of affordability, rising costs, high-interest rates, and a pandemic, the union leadership said that the contract was the best one they could secure for members.

Autoworkers in Canada

Negotiations to end the United Auto Workers union’s strike against Ford, General Motors, and Stellantis may be impacted by the conditions of the agreement.

In negotiations with the UAW, Unifor made certain important demands that Ford and other manufacturers have not yet agreed to, including the reinstatement of a pension plan for Unifor workers hired by Ford in recent years. The UAW walkout, which began on September 15 with 12,700 members, aimed to reinstate traditional pension schemes for workers hired since 2007.

The agreement reached by Unifor meets the organization’s fundamental demands, including a 10% salary rise in the first year of the contract, beginning September 25, and increases of 2% and 3% in the following two years.

Additionally, all current and past employees are exempt from the health care deductible under the agreement.

The agreement covers roughly 5,700 union members, including 5,300 employees at three facilities, almost 400 employees at three distribution centers, and another two offices.

Some of Ford’s important models made in US factories may have experienced production delays if they had gone on strike. The agreement could lead to new contracts with Stellantis and GM and will serve as a model for Unifor’s pattern negotiations.

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