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September 27, 2020

Ford union deal sees $1.8bn to build BEVs

Ford Motor Company of Canada and auto union Unifor have reached a new globally competitive national labour agreement establishing Ford as the first automotive manufacturer in Canada to build fully battery electric vehicles (BEVs) as part of a C$1.8bn investment.

By Olly Wehring

Ford Motor Company of Canada and auto union Unifor have reached a new globally competitive national labour agreement establishing Ford as the first automotive manufacturer in Canada to build fully battery electric vehicles (BEVs) as part of a C$1.8bn investment.

Operational improvements in the agreement will maximise production flexibility and hourly employees receive wage increases, bonuses and other benefits.

Based on the collective agreement ratified by employees, Ford has committed to transform its Oakville Assembly Complex in Ontario from an internal combustion engine (ICE) site to also become a BEV manufacturing facility, starting in 2024, as well as introducing a new engine programme at its Windsor operations.

Employees have also voted in favour of the three year agreement that enables several operational improvements to increase the efficiency of Ford’s Canadian facilities, including competitive alternative work schedules to maximize production flexibility and an enhanced temporary employee programme.

Ford hourly employees also receive a number of benefits, including 2.5% wage increase twice over the life of the agreement, $7,250 ratification bonus for full time permanent employees and $500 for temporary employees and a reduced grow-in period for new hires from 11 years to eight years.

“Working collaboratively with Unifor, and as discussions continue with both the federal and provincial governments, this agreement is an important step toward building a stronger future for our employees, our customers and our communities,” said Dean Stoneley, president and CEO, Ford of Canada. “By introducing battery electric vehicle production at Oakville Assembly Complex, we are cementing our Canadian operations as a leader in advanced automotive manufacturing.”

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