Ford Motor Co. is nixing potential plans to award its Ontario engine assembly plants with a new investment program that would have created 1,000 jobs, according to union reps.
Officials for Unifor, which represents Canadian auto workers, confirmed on Friday Ford failed to reach a deal with the Ontario and federal governments.
Ford was reportedly looking for additional incentives from the two levels of government in exchange for bringing production of new 1.5-litre and 1.6-litre engines to a pair of long-running plants in Windsor, Ont., which borders Detroit.
Landing the potential $2 billion investment from the Dearborn, Mich.-based auto maker would have created 1,000 jobs, officials say, and led to the recall of hundreds of laid off workers.
“It’s very, very devastating news, for our members and our community,” Chris Taylor, president of Unifor Local 200, told the Windsor Star.
Unifor officials confirmed that Ford will instead make the investment for the new engine program in its Mexico facilities.
The news comes weeks after Ford Canada announced plans to hire an additional 1,000 workers at another Ontario plant in Oakville, Ont. to build the redesigned Ford Edge crossover.
Unifor Local 200, which represents Ford workers in Windsor, is expected to hold a meeting Sunday to explain the decision to its members.
Incentives and concessions
The total $700-million commitment to Oakville was contingent upon taxpayers contributing $140 million. Ford is spending $560-million to build vehicles it will sell around the world.
MORE: Taxpayers gave Ford $140,000 per job – but deal’s details are secret
The new jobs would be the first added at Ford Canada since the Canadian Auto Workers union, now Unifor, agreed to reduce hourly wages for new hires at the Canadian units of the Detroit Three auto makers, which include General Motors and Chrysler.
The union also agreed to extend the amount of time it takes new employees to reach the full hourly wage of about $32 paid to longer-term workers.
Ford declined to comment on the engine investment decision.
— with files from Canadian Press
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