Unifor Local 707 Plant Chairperson and Vice Chairperson of Ford Council -Company Announcement and Additional Retool Provisions

Brothers and Sisters,

Ford Motor Company’s announcement to retool the Oakville Assembly Plant and produce the iconic F-Series Super Duty Truck is a significant change of direction from the original plan to build battery electric vehicles. The announcement will bring the F-Series truck back to Oakville for the first time since 2004. Since early April, when the company made the decision to extend the retool period at Oakville, the National and Local Union jointly engaged the Ford Motor Company and multiple levels of Government in discussions.  The process of finding a solution to support our members was multi-layered and extensive.  We had lengthy discussions on ensuring income security for members during the extended retool as well as securing work for the plant to both shorten the downtime and ensure Local 707 members have the strong and stable future they deserve.     

This shift in direction for Oakville will accelerate the timeline for the launch of Oakville’s next product by about a year.  The Oakville F-Series Super Duty is scheduled for production in the summer of 2026.  Details regarding training and prebuild requirements are still being worked out and will be communicated to the members once finalized.  The market for the Super Duty product is more stable and predictable than the 3-row passenger BEV market is today, although we expect that EVs, and Hybrids will capture an increasing share of new light-duty vehicle sales in years to come.  A key element to agreeing to this product change is that our site will now produce multi-energy vehicles, building not only gas-powered trucks but also electrified Super Duty trucks.  Oakville will be the initial sole source of electrified pick-ups beginning production later in the decade. 

With this product planning change, the commitment and investment being made by Ford Motor Company to Oakville Assembly will increase by $500 million on top of the original commitment of $1.8 billion back in 2020.  Included in this investment is a commitment to current Super Duty trucks, next-generation Super Duty trucks as well as electrified variants and an on-site stamping plant.  This investment not only supports the Oakville Unifor 707 membership but will also create additional work for our brothers and sisters at Unifor Local 200 in Windsor. 

In addition to the announced change of product for Oakville your National and Local Bargaining Committee have also extended and enhanced the income security transition provisions negotiated during 2023 bargaining, the details of which you will find attached. 

Since the last Edge rolled off the assembly line our members have not only had to deal with their lay off but also struggle with an unknown future.  I want to thank the entire membership of Local 707 for their patience and solidarity during this challenging time.    The work our members did building a top-quality vehicle right to the last day of production played a significant role to have Ford work with Unifor to find a solution for Oakville. 

Marc Brennan

Unifor Ford Council Vice Chairperson-

OAC Plant Chairperson

Transition Blueprint & Additional Re-tool Extension Provisions

July 2024

SUB Credits

• SUB benefit rate will be maintained at 70% during the retooling period consistent with existing eligibility guidelines. Eligible employees with one (1) but less than three (3) years seniority will receive a top-up to thirty-eight (38) credits, or the EI maximum, whichever is greater.

Income Maintenance Benefits (IMP)

• Employees who have completed a minimum of one (1) year of seniority and who exhaust their SUB credits, during the retooling period will be eligible for Income Maintenance Plan (IMP) Benefits. These IMP benefits will continue through the re-tooling period or until September 20, 2026, whichever is sooner.

EI Repayment

• The Company will reimburse employee repayment of Employment Insurance benefits should annual net income exceeds the annual maximum income threshold as outlined by the Government of Canada.

Defined Contributions

• Company mandatory contributions to the DC pension plan (or CAAT plan if applicable) will continue throughout the re-tooling period or until September 20, 2026, whichever is sooner.

Vacation

• Prorated number of hours required to qualify for full vacation in calendar year (CY) 2025 and 2027 based on available months of production in (CY) 2024 and 2026 respectively.

Furthermore, the company and the union have agreed to amend the OEVC “ICE to EV Transition Blueprint” to include the following additional items, which will remain in effect through the re-tooling period or until September 20, 2026, whichever is sooner.

Retirement Incentives

The Company will provide one $50,000 retirement incentive for each eligible employee, who qualifies for a normal or regular early retirement, with no cap on available packages predicated on operational requirements.

• A re-canvass of existing retirement eligible employees will be conducted, as per the terms of the 2023 retirement incentive program.
• Such employees who do not elect to retire will be re-canvassed once more prior to January 2025. If any of these employees decline to accept the retirement incentive, they will be ineligible for any future retirement canvasses during this period.
• Commencing in January 2025, only employees who become retirement eligible on or after January 1, 2025, will be canvassed. Such employees will be canvassed once to determine their interest in accepting a retirement incentive.
• The parties will meet to discuss the process for conducting the retirement canvass for newly eligible employees.

Voluntary Termination of Employment Program (VTEP)

• as per the terms of the Collective Agreement.

Preferential Hire Opportunity

• Production opportunities for Oakville employees – Production transfer Opportunities for Oakville Employees in Windsor.

Retirement Healthcare Contributions (for employees hired after September 24^th, 2012)

From July 8, 2025, through September 20, 2026, (or the end of the retooling period, whichever is sooner), the Company will make retirement healthcare contributions based on forty (40) hours per week for employees hired on or after September 24, 2012, who remain on layoff.