Automakers in the US and car buyers have more than just the United Auto Workers union strike to be concerned about. Unifor, the union representing Canadian autoworkers, is poised to strike against Ford starting Monday evening.
While Ford has not provided any insights on their perspective of the contract negotiations, Unifor President Lana Payne disclosed to CNN on Saturday that there is a substantial gap between the two parties, particularly regarding financial matters. Payne stated that the union has already turned down the initial two proposals presented by Ford.
"We have a long way to go in order to reach an agreement by midnight Monday," Payne stated.
In contrast to the UAW, who has clearly stated their initial bargaining demands, which include a 40% increase in pay over the duration of the contract, neither Unifor nor Ford have disclosed their position on wage increases. However, the union is seeking significant wage hikes, improvements in pensions, and guarantees of job security, all of which are crucial issues in the negotiations between the UAW and the striking automakers as the industry shifts from traditional gasoline-powered vehicles to EVs in the coming years."
Ford operates an assembly plant in Oakville, Ontario, a suburb of Toronto, Canada. This facility, staffed by 3,400 members of the Unifor union, is responsible for manufacturing the Ford Edge and Lincoln Nautilus SUVs. Additionally, Ford operates two engine plants in Windsor, Ontario, located just across the river from Detroit. These two plants employ a combined total of 1,700 Unifor members.
The Windsor plants exclusively manufacture the V-8 engines used in Mustangs and the company's best-selling F-150 pickup trucks. In the event of a strike, customers will still have the option to purchase versions of these vehicles equipped with a 6-cylinder engine. However, if a customer specifically desires a vehicle with a V-8 engine, the Windsor plants are the sole providers. Consequently, the Ford Ranger pickup trucks and Bronco SUVs, both produced at the Warren, Michigan assembly plant where UAW members are striking, could potentially face a shortage at dealerships in the United States and Canada, joining the Edge, Nautilus, and V-8 versions of the aforementioned Ford models.
Unifor's contracts with the traditional Big Three automakers - Ford, General Motors, and Stellantis, known for producing vehicles under the Jeep, Ram, Dodge, and Chrysler brands - expired at 11:59 p.m. ET on Monday. However, the union has decided to focus on negotiations with Ford and has extended contracts with the other two automakers. Upon reaching an agreement with Ford, whether through strike action or not, Unifor will strive to persuade the other two companies to adopt the Ford deal as a template for their own contracts.
The UAW deviated from its traditional tactics this year by simultaneously striking against all three automakers for the first time in its history. However, it also implemented a new approach by having 12,700 members strike against a single assembly plant at each company, instead of all 145,000 members striking simultaneously. The union has expressed its willingness to expand the number of struck plants if negotiations do not yield progress.
Should the UAW choose to target engine and transmission plants, it has the potential to bring operations to a halt for the Big Three across the United States, Canada, and Mexico. Even striking a single transmission plant at each company could disrupt approximately 75% of North American production across the three automakers, as confirmed by industry consultant Jeff Schuster, the global head of automotive for GlobalData.
"Two plants per company, you can pretty much idle North America," he said.
Payne said shes obviously watching US negotiations carefully as she conducts her own talks with Ford.
This is the first time since 2009 that both the Canadian and US auto unions have engaged in negotiations simultaneously, which is an unprecedented occurrence. In the past, contracts would typically expire in different years. However, during the pandemic in 2020, Unifor negotiated its contracts after the UAW, and as a result, it requested a slightly shorter contract duration in order to align its schedule with the UAW's.
Striking United Auto Workers picket at Ford's Michigan Assembly Plant in Wayne, Mich., shortly after midnight Friday, Sept. 15, 2023. (AP Photo/Paul Sancya)
Paul Sancya/AP
UAW workers have launched an unprecedented strike against all three major automakers - the Big Three. Payne, a representative, has stated that workers are demanding significant improvements in wages and pensions, as they have been negatively affected by rising prices in Canada. She is confident that they will eventually secure favorable agreements, given the record or near-record profits of the automakers. Although the UAW has been offered 20% raises over the course of their contracts, the workers are on strike because they feel that these offers do not adequately compensate for the ground they have lost to inflation in recent years. Payne emphasizes that the demands for higher wages are shared by her members at all three automakers.
"Our members' expectations are high," she noted, emphasizing the need for automakers to acknowledge the current context of grappilng with higher prices. The world has undergone significant changes over the past five years."
Ford's history has been marked with robust labor relations in both the US and Canada. Notably, a US strike has not occurred since 1978, while a Canadian strike has been absent since 1990. However, Payne expressed that her Ford members are ready to initiate a strike on Monday night unless the company addresses their demands promptly.
