Members of Unifor, a labor union, at Ford Motor Co. of Canada have voted to ratify the tentative collective agreement between the union and the automaker. The three-year deal guarantees wage gains and pension improvements, as well as Ford’s investment in expanding production at one of its powertrain plants in Windsor, Ontario from 2025 onwards.

The agreement was approved by 54 percent of the 5,600 voting members, following strong negotiations by Unifor’s bargaining team. According to Union President Lana Payne, the contract brings significant changes and benefits, such as improved pension plans, protection during the transition to electric vehicles, and the highest wage increases in Canadian auto bargaining history.

Immediate benefits include a 13.6 percent increase in hourly wages for workers with four or more years at Ford, reaching $31.42 USD per hour. The deal also includes two- and three-percent wage hikes in the second and third years, respectively. By the end of the third year, top-end production pay will be 19 percent higher than under the previous contract.

New workers will experience even greater gains, with starting wages increasing by 22 percent to $29.67 CAD per hour. The contract also shortens the time it takes for new hires to reach full pay from eight to four years.

In terms of pensions, existing members on defined contribution plans will switch to superior defined benefits plans from January 1, 2025. Ford’s contribution to the new plans will increase to 7 percent of an employee’s earnings, with employees contributing 4 percent.

Ford Canada CEO Bev Goodman expressed satisfaction with the contract, emphasizing its investment in talented employees and commitment to customer satisfaction. The company also highlighted the 15 percent general wage increase as the largest uplift in Ford of Canada history.

Unifor’s success in bargaining with Ford sets a precedent for negotiations with other automakers, including GM and Stellantis, as part of the union’s patterned bargaining strategy.