Newly hired Ford Motor Co. of Canada Ltd. union employees would be placed in a new defined contribution plan under terms of a tentative agreement reached early Tuesday between the automaker and Canadian labor union Unifor.
The agreement is similar to contracts reached with General Motors of Canada Ltd., Oshawa, Ontario, and Fiat Chrysler Automobiles, Windsor, Ontario. Those contracts were ratified in the past two months.
Oakville, Ontario-based Ford of Canada's union employees will vote on ratification Nov. 5-6.
New employees at Ford of Canada and FCA have been in hybrid pension plans since they were created in 2012, said Corey Verney, director of pension benefits at Unifor. At GM, the hybrid plan “stood empty” for the past four years as newly hired employees were considered supplemental employees and were not enrolled in a retirement plan, Mr. Verney said.
Ford of Canada's defined benefit plan was closed to new employees in 2012.
Further information on Ford of Canada's plans was not immediately available; officials at the automaker could not be reached for comment.