BNR – Ford Motor made an offer to the Canadian union Unifor, with wage hikes potentially reaching 25% in their agreement.

According to the deal provisions, the first year will have a 10% wage rise.

Furthermore, it’ll be followed by increases of 2% and 3% in years two and three, with a $10,000 incentive for all Ford employees.

Notably, the proposal also encompasses an augmentation in the monthly basic benefit and special allowance across all class codes.

Investments in EV Transition

It also outlines investments to facilitate the transition from conventional internal combustion engine (ICE) vehicle production to EV assembly.

Unifor, representing around 5,600 Canadian auto workers, declared on Friday that its Ford leadership body had unanimously endorsed the agreement.

Indeed, Ford is in the middle of a big dispute in the USA.

UAW Strikes Continue

The United Auto Workers (UAW) union has launched a strike at the company’s Wayne, Michigan assembly factory.

On Friday, the UAW commenced strikes at 38 parts distribution centres scattered across the United States.

They targeted GM and Stellantis, broadening its unprecedented, simultaneous strikes.

The inclusion of these new facilities has added 5,600 workers to the labour action, supplementing the 12,700 already on strike.

Ford: A Negotiation Strategy

Although the UAW acknowledged Ford’s improved contract proposal, the union voiced remaining “serious issues”.

Unifor adopted a strategy by selecting one of the Detroit Three automakers–Ford–as its initial negotiation target.

This is part of a pattern bargaining tactic to establish a precedent for subsequent agreements with other automotive companies.

UAW President Shawn Fain expressed that by focusing on distribution centres, the strike has transitioned into a nationwide event. He also expects negotiations to extend through the weekend.

This strike has raised concerns about protracted industrial action potentially disrupting production and impacting US economic growth.

A poll, released on Thursday, underscored significant support among Americans for the striking auto workers.

Furthermore, US President Joe Biden announced his intention to visit Michigan on Tuesday to “stand in solidarity with the men and women of UAW”

In a parallel move, former President Donald Trump will visit Michigan on Wednesday to address auto workers.