Members of the Canadian Auto Workers union have ratified a new four-year labor deal with Ford. The news comes just one week after the CAW struck a tentative labor contract with the Dearborn-based automaker.
Per the terms of the new contract, the CAW will adopt a two-tier wage system that falls more in line with the labor structure of the United Auto Workers union in the United States. The contract also extends the “grow-in” period required for workers to reach the top end of the pay scale from six years to ten.
The contract also does away with cost of living raises for the first three years of the deal, but employees will receive a lump sum payment of $2,000 per year. New hires are also eligible for a $3,000 signing bonus.
“By becoming more competitive in our labor costs, we are better positioned to support the growth of the Canadian economy and to provide new job opportunities,” said Stacey Allerton, vice president of Human Resources at Ford of Canada and the company’s lead labour negotiator. “For every auto job in Canada, multiple supporting jobs are created, and both the company and our employees view that opportunity and responsibility very seriously.”
In return for those concessions, Ford is adding a third shift at its Oakville Assembly Complex that will create 300 new jobs. Ford will also produce a new vehicle based on a global architecture at the Oakville plant which could add another 300 jobs to the facility.
