Ford to Build Electric Cars in Canada as Part of Labor Deal
September 22 2020 - 01:23PM
Dow Jones News
By Paul Vieira
OTTAWA -- Ford Motor Co. of Canada has reached a tentative deal
with its 5,400 unionized employees in Canada, in a settlement that
also secures a nearly $1.5 billion investment in two plants and a
commitment to build electric cars in suburban Toronto.
The president of Unifor, Canada's largest private-sector union,
revealed the details at a press conference Tuesday. Ford's Canadian
unit issued a brief statement, saying a tentative three-year deal
is subject to ratification by union members. Until ratification, it
wouldn't comment further.
Talks extended beyond the original strike deadline of midnight
on Monday.
Unifor president Jerry Dias said the settlement, reached early
Tuesday, includes a total investment in two Ford Motor factories --
an engine plant in Windsor, Ontario, and a vehicle-assembly factory
in Oakville, Ontario -- of 1.95 billion Canadian dollars, the
equivalent of $1.46 billion. The plant in Oakville will be retooled
to build five models of electric vehicles, Mr. Dias said.
Canada's Liberal government and the conservative government in
the province of Ontario contributed toward the investment package.
Spokespeople for both governments didn't immediately respond to a
request for comment. On Monday, Ontario Premier Doug Ford said the
country's most-populous province was in talks with Ford about
providing significant cash toward keeping the plants open.
Mr. Dias said the settlement, including the investment in
plants, was the result of months of talks involving Ford, Canadian
Prime Minister Justin Trudeau and the Ontario government. At the
start of talks with Ford, Mr. Dias said Unifor was concerned about
the future of the employees at the Oakville factory, because of the
company's lack of long-term commitment to build another vehicle
there besides the Ford Edge.
"We were determined to ensure we solidified a product for our
Oakville plant. I think it is fair to say as an organization we hit
a home run," Mr. Dias said.
Mr. Dias added the agreement also secures production in Oakville
of the batteries required for the electric cars. Assembly of
battery-charged electric vehicles will begin starting in 2025, he
said.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
September 22, 2020 13:08 ET (17:08 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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