Thirty minutes after its midnight deadline, Ford Motors Company and Unifor reached a tentative agreement that reinforces the economic pattern established with General Motors of Canada Co. in September and followed by Fiat Chrysler Automobiles in October.
The pattern includes closing the hybrid pension plan to new hires who will go into a defined contribution plan instead; group life insurance benefit reductions will begin at retirement, effective Jan. 1, 2017; and a number of other changes to dental and paramedical benefits.
According to the union, the negotiations, which formerly resumed on Oct. 18, have been “the most difficult” round of talks and the “most challenging” among the Detroit Three automakers. Unifor’s bargaining committees have been ready and willing to reach a fair deal, said Denise Hammond, director of communications at the union, in a press conference Monday afternoon.
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“Bargaining, however, requires two parties: the union and the employer. In this round of talks, Ford appears to have stalled negotiations. Movement in our discussion has been painfully slow and we have been waiting on the employer to provide real and fair proposals.”
On Monday afternoon, Hammond added that, if no deal was reached before midnight, more than 6,700 Unifor members at three Ford facilities were prepared to go on strike immediately. “While we do not seek a strike, our union is firm in our priorities to secure investment and the pattern agreement that was set with General Motors and Fiat Chrysler,” she said. “Unifor and our bargaining committees remain cautiously optimistic that the pattern agreement can be reached.”
According to Unifor, Ford had repeatedly told the union throughout these negotiations that it will not meet the pattern established with General Motors and Fiat Chrysler without forcing offsets, including the immediate introduction of temporary, full-time workers that would receive a lower starting wage and concessions in the long-term health-care plan.
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“Despite Ford’s efforts to push concessions and reject the pattern set with GM, our bargaining committees were firm and focused on reaching our priorities,” said Unifor national president Jerry Dias. “This tentative agreement secures the pattern and some. It includes a significant investment for Canadian-made Ford products, it lays the path for a long-term footprint and it offers well-deserved increases for our members and gains for retirees.”
Ford employees who are Unifor members will vote to ratify the tentative agreement next week. “To respect the ratification process, Ford of Canada will not discuss the specifics of the tentative agreement until unionized employees have had the opportunity to review and vote on the agreement,” said Steve Majer, vice-president of human resources at Ford, in a release.
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