Ford and Canadian Union Reach Tentative Deal, Averting Potential Dual Labor Strike

In a last-minute breakthrough, Ford Motor Company and the Canadian union, Unifor, announced a tentative deal late Tuesday, narrowly averting a dual labor strike that could have crippled operations in both the United States and Canada.

Unifor, representing approximately 18,000 workers across Ford, GM, and Stellantis plants in Canada, had issued a strike ultimatum, threatening to halt operations at all three of Ford’s Canadian plants if an agreement was not reached by the deadline of 11:59 p.m. on Tuesday, September 19.

“We leveraged our union’s most powerful weapon: the right to strike,” Unifor stated triumphantly in a press release regarding the tentative deal. “The gains achieved were hard fought for over weeks of negotiation.”

Had a strike been initiated, it would have significantly impacted Ford’s Oakville Assembly Plant, responsible for manufacturing the Ford Edge and Lincoln Nautilus crossovers, along with two engine plants producing V8 engines.

However, it’s important to note that the agreement remains contingent on ratification by Unifor members. Consequently, the strike deadline has been extended for an additional 24 hours due to the tentative agreement.

One of the key aspects of the deal, as outlined by Unifor, involves workers seeking wage increases of 36% over a span of four years, alongside improvements in pension plans. The union also emphasized the need for support in transitioning to electric vehicles and additional investment commitments from Ford.

Unifor’s announcement indicated that this tentative agreement will serve as a model for negotiations with General Motors and Stellantis, both of which have had their strike deadlines extended while Ford discussions progressed.

With the Canadian labor situation tentatively resolved, Ford now shifts its attention to the United Auto Workers (UAW) in the United States. In the U.S., UAW members have been on strike at three major Big Three plants located in Michigan, Ohio, and Missouri, impacting production of popular models such as the Ford Bronco, Jeep Wrangler, and Chevrolet Colorado.

UAW President Shawn Fain underscored the seriousness of the situation in a video statement late Monday, warning that unless “serious progress” is made in the negotiations, more factories will join the ongoing strikes. Fain announced a noon Eastern time deadline of Friday, September 22, for escalating the strike if necessary. The union plans to reveal the locations of new strikes during an online presentation to its members on that fateful morning.

As Ford navigates these crucial labor negotiations on both sides of the border, the automobile industry watches closely, aware of the potential impact on production, supply chains, and the broader market.