Jim Farley says new contract with Canada workers helps Ford compete
Jim Farley says new contract with Canada workers helps Ford compete
Jamie L. LaReau, Detroit Free PressMon, July 20, 2026 at 10:31 AM UTC
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Autoworkers in Canada have ratified a new three-year contract between Unifor — the union that represents autoworkers — and Ford Motor Co.
In a statement on July 19, Unifor said its 5,150 members who work for Ford in Canada, voted 74% in favor of the new agreement. Unifor said its salaried Bargaining Unit members at Locals 240 and 1324 voted 97% and 100%, respectively to ratify the agreement. The new contract takes effect Sept. 21 and expires Sept. 19, 2029.
As the Detroit Free Press reported on July 18, the contract will give union members a 3% wage increase in each year of the contract, improved job security, increases to pensions and other benefits.
“Our members have ratified a strong agreement that delivers real gains and much needed stability despite unprecedented challenges facing Canadian autoworkers and the entire industry,” said Unifor National President Lana Payne in a statement.
Ford Motor CEO Jim Farley said in a statement that this contract is about investing in its employees and Canada’s future. As part of the contract, Ford agreed to invest $500 million in its Windsor Operations and Essex Engine Plant there where it makes engines for Ford's F-Series pickups and invest $400 million to retool the Oakville Assembly complex to include a new stamping operation. Production of the Super Duty is expected to start at Oakville Assembly in the third quarter and continue through the life of the agreement.
“With this agreement and our continued investments in Oakville, Windsor and Essex, we’re building on more than a century of manufacturing leadership in Canada and strengthening Ford’s ability to compete and win for years to come," Farley said. "A strong, integrated North American manufacturing system is essential to our competitiveness, and a revised USMCA (United States Mexico Canada Agreement) is critical to fending off the cost and currency advantages enjoyed by imported vehicles from Korea and Japan.”
The new contract means production employees' base wages will grow to more than $50 an hour over the life of the agreement. Skilled trades workers' base wages grow to more than $62 an hour. But union leaders point to Ford's investment as the biggest win.
“With multi-$100-million investments in our facilities and a plan to return every laid off member in Oakville to work, this agreement means our members at Ford are in a solid position now and over the next three years,” said Ford Master Bargaining Chairperson John D’Agnolo.
The agreement’s job security provisions also include the renewal of a no closure agreement and program commitments at all Ford facilities, including adding a third shift at the Essex Engine plant forecasted for 2029.
The current contact Unifor has with the Detroit Three automakers expires at 11:59 p.m. Sept. 20. Unifor and Ford started negotiating a new contract on June 22 with Unifor setting a target date of July 10 to have a deal. Unifor alerted the media it had reached the tentative agreement late July 11.
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The union entered talks knowing it would likely not win the same 2023 record-setting wage gains this time around given the economic uncertainties. But members were seeking fair economic progress on wages and pensions, the promise of products for job security and the union said it will not make concessions in this next contract.
In the states, the UAW's contract with Detroit automakers does not expire until May 1, 2028, but the union and lawmakers are watching what Unifor wins closely.
In fact, ahead of negotiations, as the Detroit Free Press reported last month, Payne had called the talks "the most consequential" of Unifor leaders' lifetimes. That's because of the challenges the auto industry faces this year as the United States Mexico Canada Agreement continues unchanged, the U.S. war in Iran remains unresolved and there continues to be 25% tariffs put in place by President Donald Trump for all vehicles and car parts imported into the United States.
“All of this makes for what will be the most consequential round of Detroit Three auto negotiations in our lifetimes," Payne said previously. "(President) Trump wasn’t bluffing. He was coming for our jobs. Investment would be impacted. Companies would respond in ways that would be detrimental to our members.”
That's because automakers are diverting billions of dollars to pay for tariffs rather than investing the money in Canadian plants, products, or workers, Payne said.
The new agreement covers members who work at the Oakville Assembly Complex, Windsor Annex and Essex Engine Plants, and Parts Distribution Centres in Paris and Casselman in Ontario and Leduc, Alberta.
"The strength of Ford has always been our people," Bev Goodman, CEO of Ford of Canada, said in a statement. "This agreement recognizes the skill, dedication and contributions of our employees, while reinforcing our shared commitment to Ford's future in Canada. It positions us to continue investing in our operations, from launching Super Duty at Oakville to growing our engine programs in Windsor and expediting parts delivery to our dealers through our Parts Distribution Centres across the country."
More: Bill Ford said automakers must 'go toe-to-toe' with China to survive
More: Ford promises Canada's autoworkers raises, bonuses and job security
Jamie L. LaReau is the senior autos writer for USA TODAY Co. who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
This article originally appeared on Detroit Free Press: Canada autoworkers ratify new contract with Ford, get generous raises
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