Ford Motor Company of Canada (NYSE:F) says its unionized workers represented by Unifor have voted in favour of a new contract that runs through 2023.
The deal, which was announced by Unifor last week, includes a $1.8-billion investment to build electric vehicles at the company's plant in Oakville, Ontario and $148 million for a Windsor, Ontario powertrain plant. About 81% of workers voted in favour of the deal.
The agreement between Unifor and Ford is expected to set the tone for upcoming contract talks with Fiat Chrysler (NYSE:FCAU) and General Motors (NYSE:GM). Unifor said it plans to meet with Fiat Chrysler this week.
Ford said the deal will see more flexible work arrangements and a quicker path for new hires advancing up the ranks. It also includes two 2.5% raises and a $7,250 ratification bonus for full-time, permanent workers.
Ford Canada Chief Executive Officer Dean Stoneley said the agreement cements the company's Canadian business as a leader in advanced automotive manufacturing.
Unifor's local union leaders endorsed the deal and urged workers to ratify the agreement. The deal fulfilled a push by Unifor to get new product commitments and funding toward electric vehicles from the three major Detroit automakers after GM downsized its plant in Oshawa, Ontario last year.
