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Ford, 6,700 Canadian union members reach tentative deal

Contract includes CAN$700M investment in engine facility

Barry Ellsworth  | 01.11.2016 - Update : 01.11.2016
Ford, 6,700 Canadian union members reach tentative deal

Canada

By Barry Ellsworth

TRENTON, Ont. 

The Ford Motor Company and 6,700 unionized Canadian employees reached a tentative settlement Tuesday about half-hour past the midnight strike deadline, Canadian media reported.

The deal includes a CAN$700 million investment in Canada, with most of the money going to upgrade one of Ford’s two engine plants in Windsor, Ontario.

“This new engine will be the highest technology, will be the most fuel efficient, will have incredible torque, horsepower and will be put into Ford’s No. 1 selling vehicles throughout the North American chain,” Unifor autoworkers union president Jerry Dias said, as reported by the Canadian Broadcasting Corporation (CBC), Canada’s national newscaster. Ford has operations in Canada at Windsor, Brampton and Oakville.

Dias refused to comment on whether the two Windsor engine plants would hire additional workers, saying the deal must first be voted on by the members.

Under the deal, the Oakville plant will not manufacture any new products, but the Ford Edge and the Lincoln MXK will continue production there, he said.

“We were able to ensure that our Oakville facilities are going to be the primary builder for export vehicles internationally,” Dias told reporters.

The tentative contract, which the union recommended be accepted by its members who are expected to vote this weekend, also includes wage increases for legacy, or long-standing, employees.

Dias expressed confidence that members would vote in favor of the new contract.

“There’s things in this agreement that we don’t like, and there’s things in every agreement we have bargained for that we don’t like,” said Bob Scott, vice chairman of the union bargaining committee. [But] we believe … that we have bargained the best agreement that we have seen in a very long time.”

Unifor had already reached new contracts with Fiat Chrysler and General Motors that will see each automaker invest $554 million in their Canadian operations, the CBC reported.

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