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On Sunday, Canadians will discover if Unifor members have approved a tentative agreement made with Ford Motor Co. this week. The deal features what the union refers to as the “largest negotiated general wage increase in Unifor and CAW history.”
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Ratification meetings are taking place this weekend, with voting closing at 10 a.m. on Sunday, and results anticipated shortly thereafter, according to a union spokesperson.
The agreement was reached after Unifor extended its strike deadline by 24 hours on Monday following reception of what was deemed a “substantial offer” from Ford.
Details about the offer have since been disclosed, incorporating modifications to Unifor’s four key priorities: pensions, wages, support for electric vehicle (EV) transition, and investment.
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One of the highlights of the tentative deal is the first cost-of-living adjustment (COLA) since 2008, as stated by the union.
Following the application of the COLA fold-in, “members are set to receive a remarkable 10 percent general wage increase, effective September 25,” the union indicates.
Members will experience a two percent wage increase in the second year of the agreement and a three percent increase in the third year.
Skilled trades are in line for additional wage adjustments of 2.75 percent in the first year and 2.5 percent in the third year.
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Moreover, the time required for those employed after 2012 to reach the prevailing pay rate has been halved from eight years to four. This modification implies that Unifor members with four to seven years of tenure would automatically advance to the top pay rate upon agreement ratification.
The tentative deal also encompasses special EV transition supports tailored to the Oakville assembly complex, which is undergoing a retooling phase. These supports include employees obtaining their Income Maintenance Plan after just one year of service instead of five and Ford reimbursing members for any Employment Insurance clawback payments to the government.
Beyond the Oakville plant, members on EI will receive a portion of their regular weekly earnings topped up to 70 percent of their usual amount, up from 65 percent.
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In terms of pensions, the tentative agreement, according to Unifor, enhances pension security for all members regardless of their plan. The deal also includes a new special quarterly payment for Unifor retirees, ranging from $125 to $200 depending on their retirement date.
The union’s statement confirms that “the issue of profits for retirees was the final topic negotiated at the bargaining table before reaching an agreement,” and that it was one of the reasons for extending the union’s deadline.
The tentative deal also binds the automaker “to refrain from any facility closures throughout the agreement’s duration.” Ford also reaffirms its intention to convert the Oakville plant into the Oakville Electric Vehicle Complex.
Negotiations with Ford are anticipated to establish benchmarks for agreements with General Motors and Stellantis, the other members of the “Detroit Three” consortium of major automakers in Canada and the United States.
Representing approximately 5,600 Canadian autoworkers, Unifor has been advocating for higher wages and job security for its members.
Negotiations commenced last month to craft a new contract to replace the expired collective agreement from Monday. Union members voted overwhelmingly for a strike to commence at midnight on Tuesday if a new deal was not reached.
The strike deadline was extended by 24 hours after the latest Ford offer was submitted on Monday.
The tentative agreement was reached as autoworkers in the United States faced a looming week-long strike against the Detroit Three firms.
With information from The Canadian Press.
© 2023 Global News, a subsidiary of Corus Entertainment Inc.