Ford reaches tentative labor agreement with Unifor in Canada, avoids second strike

Unifor said it struck a last-minute tentative agreement with Ford Motor Co. of Canada, averting what would have been the company's second union walkout in North America since Friday. It also would have been the first strike by Canadian auto workers against Ford in 33 years. 

The United Auto Workers union struck Ford at its assembly plant last week in Wayne, Mich., along with two other plants owned by General Motors and Chrysler. But the Detroit 3 negotiations in Canada have been far less confrontational so far.

Top union and Ford negotiators hammered out the deal late Tuesday, six weeks after the bargaining process began in August and nearly 24 hours after the original strike deadline passed.

“We believe that this tentative agreement, endorsed by the entire master bargaining committee, addresses all of the items raised by members in preparation for this round of collective bargaining,” Unifor National President Lana Payne said in a statement. “We believe that this agreement will solidify the foundations on which we will continue to bargain gains for generations of autoworkers in Canada.”

The auto maker issued a statement but offered no insight into the deal.

"To respect the ratification process, Ford of Canada will not discuss the specifics of the tentative agreement," Ford said in a statement.

No details of the tentative agreement were immediately available, but Unifor said repeatedly throughout the talks that its bargaining committees would not accept a deal that did not deliver improved pensions and wages, as well as greater job security for members during upcoming retooling periods. 

One source with knowledge of the talks said Unifor was asking for a "substantial wage increase ... north of 20 percent." The source also said pensions were the biggest sticking point right now.

The accord was announced about two hours before Unifor’s second strike deadline of 11:59 p.m. ET Tuesday.

The previous three-year contract with Ford expired at 11:59 p.m. ET Monday. 

The tentative agreement still requires approval from rank-and-file union members at Ford workplaces in Canada before being ratified but sets Unifor’s 2023 bargaining talks on a different course than those in the U.S.