Canadian auto workers ratified a new labor contract with Ford Motor Co. on Sunday, averting a threatened strike and potentially setting a precedent that could ripple in the United States United Auto Workers strike at car manufacturers in the USA
The new agreement increases base hourly wages for production workers by nearly 20% over three years and for trade workers by more than 25%, Canadian automobile union Unifor said. It also gives permanent employees a $10,000 bonus and adds a cost of living adjustment, a mechanism that adjusts wages for inflation.
Ford described the pact as a 15% wage increase over the three-year term of the agreement. However, according to the union, this figure does not include compounding of individual annual increases or the initial cost of living increase, as both should increase employees’ actual wages.
Ford did not immediately respond to a request for clarification.
It’s been a week since the United Auto Workers imposed historic work stoppages at major automakers. The UAW’s targeted strikes against General Motors, Stellantis and Ford began after the union’s contract with the companies expired at midnight on September 14. 13,000 workers left three assembly plants.
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