Ford of Canada and Unifor have reached a tentative agreement on a four-year national labour contract covering more than 6,400 unionised employees, the automaker said.
The agreement is subject to ratification by union members.
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"To respect the ratification process, Ford of Canada will not discuss the specifics of the tentative agreement until unionised employees have had the opportunity to review and vote on the agreement," the automaker said.
Unifor said the deal – it has already agreed and ratified contracts with Canadian units of GM and FCA – came "on the verge of a strike".
"Despite Ford's efforts to push concessions and reject the pattern set with GM, our bargaining committees were firm and focused on reaching our priorities," said Unifor national President Jerry Dias.
"This tentative agreement secures the pattern and some. It includes a significant investment for Canadian made Ford products, it lays the path for a long-term footprint and it offers well-deserved increases for our members and gains for retirees."
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By GlobalDataUnifor said it had successfully negotiated contracts with all of the Detroit Three automakers in Canada that adhere to an economic pattern. The pattern contract includes: investment commitments to secure good jobs for the future, 2% general wage increases in year one and four of the contract, a C$6,000 ratification bonus, C$2,000 lump sums payments in year two, three and four, benefit plan improvements and an enhanced wage progression offering thousands of dollars in increased earnings for new hires.
"This was a challenging round of talks for all of us, but we kept our eyes on the prize and secured an offer that maintains and strengthens a future for our members," said the Unifor Ford bargaining committee chair, Chris Taylor. "The pattern and the achievements in this contract are exactly the kind of security our members needed."
Unifor members will vote on the tentative agreement on 5 and 6 November.
Ford employs about 6,700 Unifor members in Bramalea, Edmonton, Oakville, and Windsor.
