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Ford avoids strike in Canada as UAW prepares to expand movement

Published 09/20/2023, 10:37 AM
Updated 09/20/2023, 10:38 AM
© Reuters.  Ford (F) avoids strike in Canada as UAW prepares to expand movement
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Ford (NYSE:F) secured a last-minute agreement to prevent a strike at its Canadian facilities on Tuesday night, just as the United Auto Workers union was gearing up for the possibility of extending its strikes against the Detroit Three automakers in the United States.

Unifor, the union representing approximately 5,600 Canadian automotive workers, had issued a strike threat for all three of Ford's Canadian plants unless an agreement was reached by 11:59 p.m. on Tuesday

"We leveraged our union's most powerful weapon: the right to strike," Unifor said in a statement. "The gains achieved were hard fought for over weeks of negotiation."

Unifor sought to improve wages and pension packages for its members. The union also sought support in the transition to electric vehicles, and increased investment commitments from Ford.

The Canadian union will now focus on negotiating agreements with General Motors (NYSE:GM) and Stellantis (NYSE:STLA), the parent company of Chrysler, as their deadlines had been extended while the Ford negotiations were ongoing.

Unifor's negotiations with the Detroit Three automakers in Canada are separate from the coordinated action by the UAW in the United States, which resulted in approximately 12,700 workers going on strike last week, affecting one assembly plant at each of these companies.

The U.S. strikes, which have now entered their sixth day, have resulted in a halt in production at facilities in Michigan, Ohio, and Missouri, where vehicles such as the Ford Bronco, Jeep Wrangler, and Chevrolet Colorado, among other popular models, are manufactured.

Shares of F are up 0.23% in mid-day trading Wednesday.

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