Ford Motor Company F announced a tentative deal with Canadian union Unifor that covers 5,600 autoworkers in Ontario province. The deal helped the Detroit automaker avoid a walkout at its Canadian operations.
Unifor threatened Ford to go on strike at all three of its plants in the country if the deal was not reached by 11:59 p.m. on Sep 19, 2023.
The three-year deal remains subject to ratification by Unifor members. The company refused to disclose details of the tentative deal.
The tentative agreement was reached on the fifth day of the United Auto Workers union strike against Ford and its arch-rivals General Motors GM and Stellantis STLA.
Unifor demanded improved wages and pensions, along with support in transitioning to electric vehicles and additional investment commitments by Ford.
The union will now try to reach a deal with General Motors and Stellantis, whose deadlines have been extended.
A Unifor strike could have impacted Ford’s Oakville Assembly Plant operations and two engine plant operations.
Unlike its U.S. counterpart, United Auto Workers (UAW), Unifor took a traditional path. The Canadian union targeted Ford in contrast to UAW, which chose to bargain with Detroit Three. It announced a national strike instead of targeted ones.
Unifor will release the details of the deal to its members in the coming days, followed by a vote. If approved, the union will use the deal to bargain with GM and Stellantis.
Ford will now direct its focus on talks with the UAW. F currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The UAW strike has suspended production in the Michigan, Ohio and Missouri plants of Detroit Three in the United States.
Shawn Fain, president of the union, said if no serious progress is made in talks with automakers, the union will announce additional strikes at U.S. facilities.
The UAW and Detroit Three have not reached an agreement over wages and benefits as of now. All three automakers have proposed 20% raises over the deal’s term, which is only half of what UAW has demanded.
Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Stellantis N.V. (STLA) : Free Stock Analysis Report
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