Ford Motor Company of Canada and Unifor have ratified a new three-year national collective agreement, committing $1.25 billion to enhance Canadian manufacturing operations. The deal, announced on July 19, includes $700 million for the Essex Engine Plant in Windsor, Ont., and $550 million for the Oakville Assembly Complex.

This agreement underscores Ford's commitment to maintaining operations in Canada and supports job security in the automotive sector, which is vital for the country's economy.

Ford Motor Company of Canada Limited and Unifor have ratified a new three-year national collective agreement, reinforcing Ford’s long-term commitment to Canada. Pictured are Meredith Keenan (left), vice-president, Human Resources, Ford Motor Company of Canada, Limited, and Lana Payne (right), Unifor National President. [Credit: Ford of Canada]

According to a company press release issued July 19, the investment package includes an additional $700 million for the Essex Engine Plant in Windsor, Ont., to increase production of 5.0-litre engines, including a forecasted third shift and support continued expansion of 7.3-litre engine production.

The package also includes $550 million previously announced for the Oakville Assembly Complex over the life of the agreement.

Ford said the agreement covers more than 5,000 Unifor-represented hourly employees in Canada.

Under the new contract, employees will receive general wage increases totalling nine per cent over three years, a $10,000 ratification bonus for eligible full-time permanent employees and a $2,000 bonus for temporary employees. The agreement also includes improvements to pension benefits, employee benefits and the wage progression schedule for new hires.

The deal renews commitments to maintain operations at Ford’s Canadian facilities and includes program commitments across the company’s Canadian manufacturing footprint. Ford said a third shift at the Essex Engine Plant is forecast for 2029.

Ford said the latest investment builds on its previously announced $5 billion transformation of the Oakville Assembly Complex into a Super Duty truck assembly plant with stamping operations. The company added that it has invested nearly $4 billion in its Canadian operations over the past decade.