Canadian Auto Workers, Ford Agree to Four Year Deal

Jason Siu
by Jason Siu

The Canadian Auto Workers (CAW) union has agreed with Ford Motor Co. on a four-year deal that will create about 600 jobs at the American automaker’s Oakville, Ontario plant.

In addition to creating new jobs at the plant, the agreement will also cut hourly labor costs for new employees. Included in the agreement is a $3,000 signing bonus in addition to bonuses of $2,000 in each of years two, three, and four of the deal. The Oakville, Ontario plant will be home to a new vehicle production starting in 2014, while 230 or so jobs will be added in the near future when the automaker adds a third shift in Oakville in order to boost production of its Edge, Lincoln MKX and MKT models.

Under the new deal, new workers will be paid around $20 an hour starting, compared to the $24 an hour that’s currently in place. Also, workers will be enrolled in a hybrid-defined benefit pension plan as opposed to the current pure-defined benefit plan. Specific details of the agreement will not be disclosed until after ratification votes take place this weekend.

Ford is the first of the ‘Big Three’ automakers to come to an agreement with CAW. Chrysler Group LLC and General Motors Co., have yet to reach a deal.

“We believe that the tentative agreement offers unique-to-Canada solutions that will improve the competitiveness of the Canadian operations,” Ford vice-president of human resources Stacey Allerton said in a statement.

Jason Siu
Jason Siu

Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.

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