Sep 24, 2023 - Economy

Canadian autoworkers ratify new labor deal with Ford

Lana Payne speaks to the delegates after being elected the new president of UNIFOR, Canada's largest private sector union, at the Metro Toronto Convention Centre on August 10, 2022.

Unifor national president Lana Payne during a 2022 event in Toronto, Canada. Photo: Richard Lautens/Toronto Star via Getty Images

The Canadian autoworkers union Unifor said its members ratified a new agreement with Ford on Sunday, which covers more than 5,600 workers.

Why it matters: Unifor national president Lana Payne had made clear that workers were prepared for scenarios including strike action should a deal not be reached, as the "Detroit Three" automakers face the UAW's historic, coordinated strike across the border in the U.S.

A tweet by Canadian autoworkers union Unifor, saying: "Priorities met! Pattern set.  Congratulations. The ballots have been counted and Unifor members at  @FordCanada  have ratified a 3-year agreement that will see tremendous gains for autoworkers."
Photo: Unifor/X

Driving the news: Unifor said in a statement that its members voted 54% in favor of the tentative agreement reached last week amid ongoing negotiations with the UAW.

  • Ford offered Unifor members wage increases of up to 25% in the new contract and improvements to all pension plans, according to the union.
  • "General wage increases in each year of the agreement with 10% in year one, 2% in year two and 3% in year three," Unifor said.
  • Representatives for Ford did not immediately respond to Axios' request for comment.

Of note: The United Auto Workers union expanded its strike against General Motors and Stellantis on Friday, but not additional Ford factories because UAW president Shawn Fain said the union had made "serious" progress in negotiations with the automaker.

More from Axios:

Go deeper