Workers at the Canadian union Unifor vote in favor of the Ford contract

Sept 24 (Reuters) – Canadian union Unifor said on Sunday its members had voted to ratify a new contract with Ford Motor (FN), a relief for the Detroit automaker that is locked in a separate dispute with its U.S -Union on demands for better wages finds benefits in the country.

Unifor, which represents about 5,600 Canadian auto workers, said its members at Ford had ratified a new three-year collective agreement.

Ford has offered union members pay increases of up to 25% in its new contract. The agreement calls for a 10% wage increase for the first year, followed by 2% and 3% wage increases in the second and third years, as well as a $10,000 productivity and quality bonus for all active employees of the company.

The Detroit automaker reached a last-minute agreement earlier this week to prevent work stoppages at its Canadian operations. On Friday, the United Auto Workers (UAW) union announced an expansion of its US strikes against General Motors (GM.N) and Stellantis (STLAM.MI).

The UAW said it had made real progress in talks with Ford, but that its workers would continue to strike at the automaker’s assembly plant in Wayne, Michigan.

Unifor had demanded higher wages and pensions from Ford, support in the transition to electric vehicles and additional investment commitments. The union has not yet reached an agreement with Stellantis and GM to prevent strikes at their Canadian operations.

Ford’s new contract includes Unifor members at the company’s factories in Ontario, as well as its parts distribution centers in Bramalea and Paris, Ontario and in Alberta.

Unlike the UAW, Unifor chose one of the Detroit Three as a “target” for negotiations—in this case, Ford—using a model negotiating tactic that set the tone for subsequent deals with other companies.

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