Article Summary
Ford of Canada and Unifor have agreed to a three-year collective bargaining agreement that includes $1.25 billion in planned investments across Ontario manufacturing facilities from 2026 to 2029. The deal covers 5,150 workers and includes $700 million for engine plant upgrades in Windsor and $550 million for Oakville's conversion to Super Duty pickup production, with a plan to recall laid-off employees by July 2027.
- $1.25 billion investment commitment across Ontario Ford facilities through September 2029
- $700 million allocated to Essex Engine Plant in Windsor for V8 engine production capacity and a third assembly shift forecast for 2029
- $550 million planned for Oakville Assembly Complex conversion to Super Duty pickup production, with new stamping operation starting Q3 2026
- 5,150 Unifor members covered by the agreement with 74% ratification approval
- Laid-off Oakville employees eligible for recall by July 1, 2027, with option for $50,000 separation payment
A new three-year collective agreement between Ford of Canada and Unifor includes $1.25 billion in planned investment at Ontario manufacturing operations.
The contract covers 5,150 Unifor members working at assembly, engine and parts-distribution facilities in Ontario and Alberta. Members covered by the master agreement voted 74% in favour. The term runs from Sept. 21, 2026, to Sept. 19, 2029.
An additional $700 million will go to the Essex Engine Plant in Windsor, Ont. The funding will increase machining and production capacity for the five-litre V8 engine and support continued production of the 7.3-litre V8. A third engine-assembly shift is forecast for 2029, subject to demand.
Another $550 million is planned for the Oakville Assembly Complex as part of the previously announced conversion to Super Duty pickup production. The project includes a new stamping operation, with production scheduled to begin during the third quarter of 2026.
“This agreement is about investing in our people and Canada’s future,” said Jim Farley, president and chief executive officer of Ford. “With this agreement and our continued investments in Oakville, Windsor and Essex, we’re building on more than a century of manufacturing leadership in Canada.”
The contract also creates a process to return employees who remain on indefinite layoff from Oakville. Eligible workers may accept a one-time $50,000 retirement or separation payment, with each departure creating an opening for one laid-off employee. The recall process is expected to be completed by July 1, 2027.
“Our members have ratified a strong agreement that delivers real gains and much-needed stability despite unprecedented challenges facing Canadian autoworkers and the entire industry,” said Lana Payne, national president of Unifor.
A no-closure commitment covering Unifor-represented facilities has also been renewed for the life of the contract.
Parts-distribution centres in Casselman and Paris, Ont., and Leduc, Alta., will continue operating, subject to customer demand.
The investment follows several difficult years for Ontario vehicle manufacturing.
The Brampton Assembly Plant has remained idle since production of the Chrysler 300, Dodge Charger and Dodge Challenger ended in 2023. General Motors also paused BrightDrop electric delivery van production at the CAMI Assembly Plant in Ingersoll after demand fell below expectations.
Production of the Ford Edge ended in Oakville in 2024 as the plant began its conversion to Super Duty production.
“With multi-hundred-million-dollar investments in our facilities and a plan to return every laid-off member in Oakville to work, this agreement means our members at Ford are in a solid position now and over the next three years,” said John D’Agnolo, Ford master bargaining chair.
