Canadian autoworkers ratified a new labor agreement with Ford Motor Co. on Sunday, averting a threatened strike and potentially setting a precedent that could play out in the United Auto Workers’ strike at automaker facilities in the U.S.
The new agreement raises base hourly pay for production workers by almost 20% over three years, and by more than 25% for trade workers, the Canadian autoworker union Unifor said. It also gives permanent workers a $10,000 bonus and adds a cost-of-living adjustment, a mechanism that adjusts wages in line with inflation.
Ford F, +1.89% described the pact as a 15% wage increase over the three year life of the agreement. But, according to the union, that figure doesn’t include compounding of each annual increase or the initial cost-of-living increase, both of which should increase workers’ actual pay.
Ford did not immediately respond to a request for clarification.
It’s been one week since the United Auto Workers launched historic work stoppages against major car makers. The UAW’s targeted strikes against General Motors GM, -0.40%, Stellantis STLA, +0.10% and Ford began after the union’s contract with the companies expired at midnight on Sept. 14. At the time, 13,000 workers walked out of three assembly plants.