A Canadian flag flutters in the wind near the Ford logo at the automaker’s headquarters in Dearborn, Michigan. (Carlos Osorio/Associated Press)
key takeaways:
- Ford and Unifor ratified a three-year contract covering approximately 5,000 Canadian workers with a 9% pay raise and bonuses.
- The agreement includes a new C$700 million investment in the Windsor Engine Plant and a previously planned C$550 million investment in Oakville production.
- Ford said the investment supports engine production and North American manufacturing consolidation as USMCA negotiations and trade disputes continue.
Ford Motor Co. and the union representing its Canadian workers have ratified a contract that will mean wage increases and bonuses for thousands of workers, as well as the automaker committing to investing in a southwestern Ontario engine plant.
Ford said in a news release July 19 that hourly workers will receive a 9% wage increase over the three-year term of the agreement.
Eligible full-time permanent employees will receive a C$10,000 ratification bonus, while temporary employees will qualify for C$2,000.
The collective agreement includes a new C$700 million ($499 million) investment at its Essex Engine plant in Windsor, Ontario, in addition to a previously planned C$550 million investment for its Oakville Assembly factory, which is expected to ramp up production of larger pickup trucks.
Ford said the new money for the Essex plant will “maximize 5.0-litre engine production” and support the construction of even larger engines. Many of those parts are shipped to Ford’s US assembly plants.
Unifor members at Ford Motor Company facilities across Canada have voted overwhelmingly in support of a new three-year collective agreement that provides wage increases, bonuses, pension reforms and more. https://t.co/yDPV3T1apF
– Unifor (@UniforTheUnion) 19 July 2026
The engine facility is a short drive from the Gordie Howe International Bridge, a new span that is finally scheduled to open this month, and is designed to speed trade flows between Canada and the U.S. for automotive and other sectors.
“This agreement is about an investment in our people and Canada’s future,” Ford CEO Jim Farley said in a statement.
Farley also spoke in favor of the US-Mexico-Canada Agreement, which the Trump administration has so far refused to renew. “A strong, integrated North American manufacturing system is essential to our competitiveness, and a revised USMCA is critical to reducing the costs and currency benefits of vehicles imported from Korea and Japan,” he said.
The union, known as Unifor, represents about 5,000 Ford workers in Canada.
