Ford Proposes 25% Wage Increase, Wins Approval from Canadian Union Unifor

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Ford Motor Company has put a generous offer on the bargaining table. It has proposed wage increases up to 25 per cent in a preliminary agreement with the Canadian union Unifor, as reported on Saturday. Full-time employees stand to profit substantially from a 10 per cent salary increase in the first year, followed by increases of two and three per cent, respectively, in the second and third years. A bonus of $10,000 earmarked for productivity and quality was also introduced for all staff members on the company’s active roll, according to Unifor.

Ford’s proposed amendments extend beyond wages, encompassing an enhancement of the monthly basic benefit and a unique allowance across all class codes for defined benefit and hybrid pension plans. The strategy also includes investments poised to facilitate the shift from traditional internal combustion engine vehicle production to electric vehicle assembly facilities.

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Unifor, representing approximately 5,600 Canadian automobile workers, has declared that its Ford leadership group has unanimously voted in favour of the tentative agreement. This comes while Ford is entwined in contractual discussions in the U.S., facing a strike at its Wayne, Michigan assembly plant, instigated by the United Auto Workers union.

Meanwhile, disputes persist at the Wayne assembly plant, with the UAW citing “serious issues” concerning Ford’s operations. Unlike the UAW, however, Unifor has resorted to a pattern bargaining method, targeting one of the Detroit Three automakers – Ford, in this case – to set a precedent for future negotiations with others.

Despite the industrial action’s potential impact on production and U.S. economic growth, support for the striking autoworkers remains robust, as revealed in a recent Reuters/Ipsos poll. High profile Involvement also came in the form of U.S. President Joe Biden declaring his solidarity with the UAW workers on a social media platform, with former President Donald Trump setting his sights on addressing autoworkers in Michigan.

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