Ford Motor (F) -) shares ticked higher Wednesday after the carmaker reached a deal with Unifor, the union representing workers at its three Canadian plants, avoiding a second strike.
Ford Canada reached the three-year deal just hours before a midnight Monday deadline set by Unifor, which would have triggered strike action in assembly and engine plants in three different cities in Ontario.
“We believe that this tentative agreement, endorsed by the entire master bargaining committee, addresses all of the items raised by members in preparation for this round of collective bargaining,” said Unifor President Lana Payne.
“We believe that this agreement will solidify the foundations on which we will continue to bargain gains for generations of autoworkers in Canada.”
Unifor, which did not disclose terms of the deal, also extended deadlines for talks with both General Motors (GM) -) and Stellantis (STLA) -), while it ratifies its deal with Ford among union members.
Any impact those talks may have on the United Auto Workers union strike in the U.S., which enters its sixth day on Wednesday, remains unknown. But reports have suggested that the UAW has reduced its four-and-a-half year pay demand to 36%, down from its original position of 46%, as negotiations have progressed.
Encouraging to see a strike in Canada averted with a deal with Canadian autoworkers. One small step. Didn’t get a lot of press - a plane that lands and doesn’t crash doesn’t get mentioned.
— Diane Swonk (@DianeSwonk) September 20, 2023
The so-called Big Three automakers, meanwhile, have maintained proposals that would boost union workers' pay by 20%.
A threat to widen the U.S. auto strike
Around 12,700 workers are picketing assembly sites around the Midwest, including a Ford plant in Wayne, Mich., a General Motors facility in Wentzville, Mo., and a Jeep plant owned by Stellantis in Toledo, Ohio, since last week's deadline came and went without a deal on pay and pensions.
UAW President Shawn Fain has said the union will unveil more strike targets, with more union members participating, by noon U.S. Eastern Time Friday, unless there is "serious progress" in talks with the Big Three.
"Autoworkers have waited long enough to make things right at the Big Three," Fain said. "We’re not waiting around, and we’re not messing around. So, noon on Friday, September 22nd is a new deadline."
Ford shares were marked 0.3% higher in early Wednesday trading to change hands at $12.60 each. GM shares, meanwhile, were little changed around $34. Stellantis shares were marked 3.2% higher around $20 on the New York Stock Exchange.
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