Workers get 3% annual wage increases, cost of living allowance, productivity bonus
Ford Motor Company of Canada has committed roughly C$1.25 billion in investment across its Canadian manufacturing operations as part of a new three-year collective agreement with Unifor.
Of the total investment, C$700 million (US$500 million) is earmarked to maximize 5.0-litre engine production at the Essex Engine Plant, including a forecasted third shift, and to support expanded 7.3-litre engine output. A previously planned C$550 million (US$400 million) will go toward Oakville Assembly Complex to support Super Duty production.
"This agreement is about investing in our people and Canada's future," said Jim Farley, CEO, Ford Motor Company. "With this agreement and our continued investments in Oakville, Windsor and Essex, we're building on more than a century of manufacturing leadership in Canada and strengthening Ford's ability to compete and win for years to come. We're proud to invest in Unifor's strong leadership and in our outstanding Canadian employees, dealers and customers."
Unifor said the agreement renews a no-closure provision and secures program commitments at all Ford Canadian facilities, tying the investment directly to job security for members.
“With multi-hundred-million dollar investments in our facilities and a plan to return every laid off member in Oakville to work, this agreement means our members at Ford are in a solid position now and over the next three years,” said Unifor’s Ford Master Bargaining Chairperson John D’Agnolo.
The union also negotiated a pathway back to "full employment" for workers laid off from the Oakville plant, targeting completion by July 1, 2027, along with a $10,000 special payment for members currently on indefinite layoff there.
Unifor National President Lana Payne said the agreement was reached amid difficult industry conditions, stating, "Negotiating during a crisis is never easy, but our driving goal was to make a wide range of improvements for all of our members building on the gains made in 2023".
Canada's manufacturing sector has been posting its fastest pace of growth in three years, with motor vehicle and parts output jumping sharply as auto assembly plants in Ontario ramped back up after retooling shutdowns, according to a previous report. That report noted the rebound in machinery, auto and other durable goods points to renewed hiring pressure in skilled trades, maintenance, engineering and production supervision, as plants that had shut down lines for retooling begin bringing them back online.
Wages, bonuses and benefits
The agreement – which takes effect Sept. 21, 2026 and expires Sept. 19, 2029 – delivers annual general wage increases of 3%, pushing full-rate production workers' wages to $50.20 an hour and skilled trades workers' wages to C$62.71 an hour by the contract's end.
Eligible members will receive a C$10,000 productivity and quality bonus and a $2,000 December bonus in the first year.
Unifor said the deal also increases Retirees Universal Healthcare Allowance payments and extends them to include surviving spouses.
Ottawa is investing billions of dollars under an initiative aimed at recruiting, training and certifying between 80,000 and 100,000 new Red Seal trades workers over five years, with federal projections showing Canada will need more than 1.4 million new trades workers by 2033, according to a previous report.
A related analysis by George A. Hamzo, employment lawyer at Lerners, noted that this scale of investment signals the skilled trades labour market will remain competitive, regulated and expensive, and that manufacturers who treat apprenticeships as structured employment relationships — rather than relying on informal practices — will be better positioned than those who do not.
Ford's commitment to a third shift and expanded engine production at Essex will add to that competition for millwrights, industrial electricians, welders and maintenance mechanics in the Windsor-Essex region specifically, at a time when employers nationally are already competing for the same limited pool of certified trades workers.
