Unifor, the Canadian autoworkers union, approves 3-year deal with Ford with 10% wage increase in first year

News from this site on September 25th that Unifor, the Canadian autoworkers union, voted 54% in favor of signing a new three-year collective agreement with Ford of Canada to fundamentally change the pension plan and provide protection during the transition to electric vehicles. And includes the highest wage increase in the history of Canadian auto negotiations.

Unifor gave an example: By the end of the three-year collective agreement, a Ford worker with one year of service will rise from US$25.75 to US$46.13 (including living expenses allowance, currently about 337 yuan)—— In addition to the bonus of US$10,000 (note on this site: currently about 73,100 yuan), the salary has increased by nearly 80%.

Highlights of the agreement include:

• During the term of the agreement, the basic hourly wage for production will increase by nearly 20%, and the basic hourly wage for trades increases by 25%.

• At the end of the three-year agreement, top production assemblers will earn $44.52 an hour, plus an estimated $1.61 living allowance (for a total of $46.13); skilled tradespeople will receive Wage is $55.97 per hour, plus an estimated living allowance of $1.61 ($57.58 total)

• Wages generally increase each year of the agreement, with a 10% increase in the first year, It will increase by 2% in the second year and 3% in the third year.

• Currently, hourly wages for Ford production workers in Canada are $11.00 (35%) more than hourly wages for Ford workers in the United States.

• Restart Cost of Living Allowance (COLA).

• The salary progression period has been shortened from 8 years to 4 years

• The starting salary for temporary part-time and production workers has been reduced from 24.26 per hour The USD increased to $29.67 and further increased to $30.26 within 12 months and to $31.16 by the end of the agreement.

• Full-time employees will receive a productivity and quality bonus of $10,000, while temporary part-time employees will receive $4,000 (approximately RMB 29,240)

• Optimize all pension plans

• The basic monthly benefit rate for production workers’ fixed benefits increased from $68.60 to $73.60, and the basic monthly benefit rate for skilled trades increased from $81.60 to $87.60.

• Under the "30+" pension plan, the monthly pension of production workers who retire at the age of 30 will increase from US$3,545 to US$3,795 (currently approximately 27,741 yuan). For skilled workers, their "over 30" pension will increase from US$3,925 to US$4,225 (currently about 30,885 yuan)

• Increase the mandatory contribution from 4% 7% is the requirement for DC plans. A DC plan is a plan in which individual accounts are set up, with contributions jointly made by the employee and the employer. The employee is the responsible subject and account owner, and the employer does not guarantee the employee's benefits after retirement. The level of retirement benefits depends on contribution accumulation and investment returns

• DC plan members will transition to the new DB formula on January 1, 2025 for current plan members and all new employees pension.

• A new quarterly payment unique to Canadian retirees called the Universal Health Care Benefit. These quarterly payments will continue during each year of the three-year agreement.

• Invest in Essex Engine Works.

• Special electric vehicle transition measures were negotiated for members of the Oakville Assembly Plant.

• Improve the Supplemental Unemployment Benefit (SUB) program by increasing the income replacement supplement in the event of layoff from 65% to 70% of weekly earnings and reducing eligibility from 3 years to 1 year .

• There are 556 retirement awards, each with an amount of US$50,000 (approximately RMB 365,000)

• Two new ones Paid holidays: Family Day and National Truth and Reconciliation Day (Canadian holiday). What's been rewritten: Two new paid holidays added: Family Day and National Truth and Reconciliation Day (a Canadian holiday)

• Major health benefit improvements for working people and retirees, Includes:
  1. Eliminate the $97 quarterly health care deductible;
  2. Increase the maximum coverage for blood glucose monitoring from $1,600 to $4,000;
  3. Increase the annual maximum limit for massage therapy ( $200 to $300) and physical therapy coverage ($200 to $400), and eliminates the requirement for a doctor’s note;
  4. Improved vision and dental care;
  5. After 1 year of service (before Workers in their 8th year now have access to a legal services program and a dependent scholarship program; and many other health benefit improvements.
  

• Contract expires September 20, 2026.

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