Ford faces potential Canadian strike that may impact F-Series pickup production

DETROIT – Ford Motor’s labor disputes could have international ramifications, affecting U.S. production of certain pickup trucks, as Canadian union Unifor and the company have limited time to reach an agreement for approximately 5,600 autoworkers.

The sides must strike a deal before the extended 11:59 p.m. ET Tuesday deadline to avoid a potential strike. The initial deadline for the negotiations was Monday night, but the deadline was extended for 24 hours after Ford provided a “substantive offer” minutes before the deadline.

The potential strike in Canada adds to the pressure Ford is already facing following targeted strikes initiated by the United Auto Workers against Ford and its crosstown competitors General Motors and Stellantis, the parent company of Chrysler.

If a Unifor strike occurs, it would disrupt Ford’s Oakville Assembly Plant, which manufactures the Ford Edge and Lincoln Nautilus crossovers. It would also affect two engine plants that produce the 7.3-liter and 5.0-liter V8 gasoline engines used in profitable products like the Ford F-Series Super Duty and F-150 pickups, as well as the Mustang.

If a prolonged strike occurs in Canada, it could eventually impact U.S. production of these vehicles. The scope of the impact would depend on Ford’s engine stock and how much the company is willing to shift focus to non-V8 gasoline engine models.

For the F-150 and Mustang, Ford could ramp up production of four-cylinder and V6-powered engines, including EcoBoost models that have accounted for the majority of sales since 2018. The company could also increase production of diesel engines for its larger Super Duty trucks.

Gasoline V8 models make up around 50% of Mustang sales and 20% of F-150 sales in the U.S. However, the majority of large F-Series trucks are equipped with diesel V8 engines, which are produced in Mexico, not Canada.

Unifor, which represents 18,000 Canadian workers at the Detroit automakers, has taken a more traditional approach to negotiations compared to its U.S. counterpart. The Canadian union selected Ford as its “target” company instead of bargaining with all three automakers, and it announced a national strike, if necessary, rather than targeted ones.

Hours before the initial deadline, Unifor National President Lana Payne said the union and Ford were not in agreement on key issues, such as wages and pensions. The last time Canadian automakers went on strike was in 1990.

Unifor has been in touch with the United Auto Workers, showing solidarity and support for each other during the negotiations.

Unifor National President Lana Payne has been in contact with UAW President Shawn Fain and both unions have shown solidarity with each other throughout the negotiations.

Ford and Unifor declined to comment on the details of the company’s proposal that resulted in the extension of the deadline.

Extending contract deadlines is common during automotive collective bargaining, but Fain declined to do so and set a second deadline of noon Friday for additional strikes if “serious progress” is not made in the talks.

If the Unifor strikes do not impact F-Series production, potential expanded UAW strikes starting Friday could have an effect. Large pickups are the profit engines for the Detroit automakers, and each company has substantial inventories of these vehicles.