Ford and Canadian autoworkers approve a new labor agreement

Averting a threatened strike, Canadian autoworkers signed a new labor agreement with Ford Motor Co. on Sunday, creating a precedent that could apply to the U.S. UAW walkout.

Unifor, the Canadian autoworker union, said the new agreement improves manufacturing workers' base hourly pay by roughly 20% over three years and trade workers' by more than 25%. It also pays permanent workers a $10,000 incentive and a cost-of-living increase to match inflation.

Ford said the three-year contract would raise wages by 15%. The union claims that figure doesn't include compounding of annual increases or the first cost-of-living rise, which should boost workers' income.

One week has passed since the UAW began record work stoppages against major automakers. The UAW initiated targeted strikes against General Motors, Stellantis, and Ford after its contract expired at midnight on Sept. 14. Then, 13,000 workers left three assembly plants.