Unifor union picks Ford as Detroit 3 bargaining target in Canada

Unifor has its sights set on Ford Motor Co. of Canada as it looks to set a pattern for this year’s bargaining talks with the Detroit 3.

Union President Lana Payne on Tuesday picked Ford as Unifor’s target automaker — three weeks after hinting she was leaning toward focusing on the company that employs about 5,500 union members in Canada to lead off this year’s contract talks.

The union opened the 2023 round of bargaining in Toronto on Aug. 10, handing negotiators for each of the three automakers thick binders comprised of union bargaining proposals. Talks began in earnest Aug. 22 after Unifor leadership returned from a summit in Halifax.

Payne’s announcement of Ford as the initial union target at the Sheraton Centre in Toronto comes roughly three weeks before Unifor’s current three-year contracts with the Detroit 3 are set to expire Sept. 18. The UAW's contract with the Detroit 3 expires Sept. 14.

Throughout August, Payne said Unifor made “significant progress” with Ford at the subcommittee- and local bargaining-table-levels in a short amount of time, reinforcing her initial takeaway that Ford was the right choice.

“This showed me how serious the company was about taking the lead — walking the walk and not just talking the talk,” she told reporters Aug. 29.

Payne said Ford laid out a “vision” for the future of Canada’s auto sector during discussions. There were “areas of disagreement” with Unifor’s own framework, she added, but also areas of alignment, giving her confidence Ford represented the “best opportunity” to set this year’s bargaining pattern.

The union’s negotiating position with the automaker was yet another factor.

Oakville a 'centerpiece'

Ford's Oakville assembly plant is poised to become a “centerpiece” in Ford’s EV transition, Payne said, while its two Windsor engine plants produce vital engines for some of the “most lucrative vehicles” in the automaker’s lineup, helping to strengthen the union’s hand.

In response to Unifor naming Ford the target automaker, Steven Majer, Ford Canada’s vice-president of human resources, said the company is committed to “finding new approaches, new solutions, and the flexibility required to be successful in the short- and long-term in Canada.”

“For our industry, this is a time like no other and success requires us to adapt,” he said in an emailed statement.

Ford and Unifor have “a long track record of productive collaboration,” he added, and the company is looking forward to working with the union to “create a blueprint that leads our employees, our business, our customers, and our communities into the future.”

As with General Motors and Stellantis, Ford is currently transitioning its Canadian operations to electric vehicle production. It detailed plans this April for a C$1.8 billion ($1.3 billion USD) retool of its Oakville plant southwest of Toronto, which includes both vehicle and battery pack assembly areas.

Unifor bargained the investment as part of its previous collective agreement, and Payne said the union sees the execution of that project as “unfinished business.”

While retooling in Oakville is scheduled to start next year, Ford’s two engine plants in Windsor do not have commitments that will extend their lives into the EV era. Payne said further investment in those plants is sure to be part of the ongoing talks.

Strike mandate

Over the weekend, Unifor also secured an overwhelming strike mandate from members at all three automakers. The procedural step does not indicate a strike is imminent, but gives the union’s negotiators another card to play if talks reach an impasse as the contract expiry deadline approaches.

Unifor’s Ford bargaining team will continue discussions with negotiators from the automaker over the coming weeks, while talks with GM and Stellantis will be paused.

Stellantis spokeswoman LouAnn Gosselin said the company “respects Unifor's decision,” on its target.

“We remain committed to on-going discussions with Unifor to achieve a competitive collective agreement,” she said in an email.

Likewise, Jennifer Wright, executive director of communications for GM Canada, said the company “welcomes working with Unifor to reach a cooperative, flexible and competitive labour contract.”

Talks with GM and Stellantis are unlikely to kick back into gear before Unifor has struck a deal with Ford.

As part of its patterned bargaining strategy, Unifor aims to lock in a benchmark contract with its initial target automaker. This typically sets a bar for wages and other key concessions with the other two automakers.