Ford Motor Co. has reached a provisional labor deal with its 5,400 unionized employees in Canada. They have also secured a nearly $1.5 billion investment in two plants and a commitment to build electric cars in suburban Toronto from Ford as part of labor deal.
Factories in the country produce roughly two million vehicles annually, but from 2000 that was cut down by 25% as car makers invested in lower-cost regions such as Mexico and the U.S. Sunbelt. The president of Unifor, Canada’s largest private-sector union, revealed the details of the Ford pact covering wages and benefits at a news conference Tuesday. Ford’s Canadian unit issued a brief statement, saying the three-year agreement is still subject to ratification by union members. Until ratification, the company said it wouldn’t comment further.
Unifor President Jerry Dias said the settlement, which was reached early Tuesday, will be put to a vote by members starting Sunday. He said the biggest accomplishment of the deal was an investment of 1.95 billion Canadian dollars, the equivalent of $1.46 billion, in two Ford Motor factories in Ontario—an engine plant in Windsor and a vehicle-assembly factory in Oakville. The latter will be retooled to build five models of electric vehicles, with production starting in 2025, Mr. Dias said.
Last week, Ford said it would spend $700 million to expand its largest and oldest factory to make electric pickup trucks in Michigan, which is next door to Ontario, Canada’s most populous province. Read More