The Canadian labor union Unifor said on Sunday that its members had voted to ratify a new contract with Ford Motor, a relief for the Detroit automaker, which is locked in a separate battle with its U.S. union over demands for better pay and benefits.
Unifor, which represents about 5,600 Canadian autoworkers, said its members at Ford ratified a new three-year collective agreement.
Ford has offered the union members wage increases of up to 25 percent in its new contract. The agreement provides a 10 percent wage increase for the first year followed by increases of 2 percent and 3 percent through the second and third years and a $10,000 productivity and quality bonus to all employees on the company’s active roll.
Ford reached a last-minute deal last week that prevented walkouts at its Canadian operations. On Friday, the United Automobile Workers union announced an expansion of its U.S. strikes against General Motors and Stellantis, the parent of Chrysler, Jeep and Ram.
But the U.A.W. held off on expanding its U.S. strike against Ford, saying that it had made real progress in talks with the company. Workers will remain on strike at the automaker’s Wayne, Mich., assembly plant.
Unifor had sought improved wages and pensions, support in the transition to electric vehicles and additional investment commitments from Ford. The union has yet to reach a deal with Stellantis and G.M. to avoid walkouts at their Canadian facilities.
Ford’s new deal covers Unifor members at the company’s plants in Ontario, as well as its parts distribution centers in Bramalea and Paris, Ontario, and in Alberta.
Unlike the U.A.W., Unifor chose one of the Detroit Three as a “target” to negotiate with first — in this case, Ford — in a bargaining tactic used to set the tone for subsequent deals with other companies.