Chloé DuboisUnifor Auto Sector Collective Agreement 2024–2026 — Complete Guide to Your Rights and Pay
If you work on an assembly line in Oshawa, Windsor, Oakville, or Brampton, or in one of the propulsion and parts distribution facilities that keep Canada's automotive sector running, the Unifor auto sector collective agreement is the document that governs your pay cheque, your overtime, your pension, and your rights on the floor. The landmark agreements negotiated by Unifor with the Detroit Three — General Motors Canada, Ford Motor Company of Canada, and Stellantis Canada — represent one of the most significant victories in Canadian labour history in a generation. Together, these agreements cover approximately 19,400 workers across dozens of facilities in Ontario and beyond.
This guide explains every major provision of the agreement in plain language. Whether you are a newly hired production assembler trying to understand your progression rate, a skilled trades journeyperson calculating the value of your shift differential, or a seasoned employee approaching retirement and wondering about your defined-benefit pension, this page has what you need. Use the free calculator below each section to run your own numbers in seconds.
Who Is Covered
The Unifor auto sector agreements cover workers at three distinct employer groups, each with their own master agreement and local supplements:
General Motors Canada — approximately 4,300 workers at the Oshawa Assembly Complex (including the new third shift added under the agreement), the St. Catharines Propulsion Plant, and the Woodstock Parts Distribution Centre. Unifor Locals 222, 199, and 636 represent these members.
Ford Motor Company of Canada — approximately 5,600 workers at Oakville Assembly Complex, the Windsor Engine Plant, the Essex Engine Plant, and parts distribution facilities in Bramalea and Talbotville/St. Thomas. Unifor Locals 707 and 1520 are the primary bargaining agents.
Stellantis Canada — approximately 8,200 workers at Windsor Assembly Plant (which produces the Chrysler Pacifica and Dodge Grand Caravan), Brampton Assembly, Etobicoke Casting, Mississauga Parts Distribution Centre, and the Red Deer Parts Distribution Centre. Unifor Locals 444, 195, 1498, 1285, and 815 represent these members.
GM CAMI — an additional 1,300 workers at CAMI Assembly in Ingersoll (Canada's sole EV manufacturing plant, producing the BrightDrop electric van) ratified a supplemental agreement in September 2024, extending protections and wage improvements through the same expiry date of September 20, 2026.
All workers covered by these agreements are employed in the automotive manufacturing sector, which falls under Ontario's Employment Standards Act, 2000 (ESA) rather than the federal Canada Labour Code. This distinction matters when calculating overtime thresholds, statutory notice entitlements, and vacation pay.
Current Wage Rates and Pay Grid
The wage increases negotiated in these agreements are the largest in Unifor's history and among the highest achieved by any North American union in a single round of bargaining.
Production Workers (Top-Rate Assembler)
Under the current pay grid, a production worker who has reached the top rate earns approximately $44.52 per hour as of the Year 2 increase (September 2024). With the Cost of Living Allowance (COLA) that was reactivated effective December 2024, the estimated total rate by the end of the agreement in September 2026 is approximately $46.13 per hour, representing an effective hourly increase of $1.61 from COLA alone.
Skilled Trades Journeypersons
Journeypersons across all three companies earn approximately $55.97 per hour under the Year 2 rate, with an estimated end-of-agreement rate approaching $57.58 per hour after full COLA accrual.
Wage Increase Schedule (All Three Companies — Pattern Agreement)
| Period | Increase | Notes |
|---|---|---|
| Year 1 (ratification, 2023) | +10% | Applied at time of ratification |
| Year 2 (September 2024) | +2% | Applied to all active rates |
| Year 3 (September 2025) | +3% | Applied to all active rates |
| COLA (Dec 2024 onward) | ~$1.61/hr | CPI-tied, reinstated after suspension |
The total increase for a long-service production worker is approximately 15–20% over the agreement's life. Skilled trades workers fared even better, reaching closer to 25% in total improvement including COLA.
Entry-Level and Progression Workers
One of the most transformative elements of this agreement was the acceleration of the wage progression timeline. Workers no longer have to wait eight years to reach the top rate — the progression period was reduced to four years. Entry-level workers starting in 2024 or later begin at around $25.75 per hour and reach the top production rate within four years of service, representing a nearly 79% increase from start to top rate over that compressed timeline.
Temporary Part-Time (TPT) Workers
TPT workers also received meaningful increases. Starting rates moved to approximately $29.67 per hour, rising to $30.26 after 12 months and approaching $31.16 by the end of the agreement. The agreements also committed to converting hundreds of temporary workers to permanent full-time status over the life of the deal, providing greater job security for this segment of the workforce.
Ratification Bonus
Full-time employees received a $10,000 Productivity and Quality bonus at ratification. TPT workers received $4,000. An early retirement incentive of $50,000 was also made available for a limited number of positions (confirmed at Ford; similarly structured at the other companies).
Overtime Rules and Shift Premiums
Overtime Thresholds Under Ontario ESA
Because the auto sector falls under provincial jurisdiction in Ontario, overtime is governed by the Ontario Employment Standards Act, 2000. The statutory threshold is 1.5 times the regular rate for all hours worked in excess of 44 hours per week. The Unifor collective agreements typically provide stronger protections than this minimum floor — consult your local union agreement for CBA-specific daily and weekly thresholds that may be more favourable.
Shift Premiums
Shift premiums compensate workers for the disruption of working non-standard hours. Under the Unifor auto agreements, shift premiums are:
- Afternoon shift premium: +$0.86 per hour
- Night (midnight) shift premium: +$1.12 per hour
These premiums are added to your regular base rate and are subject to standard deductions for CPP, EI, and income tax. They are also included in the calculation of overtime pay when shift-premium hours trigger the overtime threshold.
Holiday Premium
When you are required to work on a statutory holiday, you are entitled to your regular rate of pay for that day, plus an additional 1.5 times your regular rate for hours actually worked — effectively 2.5 times your base rate for each hour worked on a stat day. This is a significant premium and the free calculator below can help you determine the exact value for your situation.
Vacation and Leave Entitlements
Ontario ESA Vacation Minimums
Under Ontario's ESA, vacation entitlements are:
| Years of Service | Vacation Time | Vacation Pay Rate |
|---|---|---|
| Under 5 years | 2 weeks minimum | 4% of gross earnings |
| 5 or more years | 3 weeks minimum | 6% of gross earnings |
CBA Improvements
Unifor collective agreements at the Detroit Three have historically provided vacation entitlements that exceed these ESA minimums. The master agreements typically provide additional weeks of vacation for senior workers and may include provisions for personal leave, bereavement leave, and medical leave that go beyond the statutory floor. For precise vacation entitlements at your seniority level, consult your local union contract booklet.
Supplemental Unemployment Benefit (SUB)
One of the notable improvements in these agreements was an enhancement to the Supplemental Unemployment Benefit plan, which tops up Employment Insurance when workers are laid off during model changes or plant downtime:
- Income replacement level: increased from 65% to 70% of weekly earnings
- Eligibility seniority requirement: reduced from 3 years to 1 year
This means workers reach full income protection during layoffs much sooner in their career.
Notice Period and Severance
Ontario ESA Statutory Entitlements
Because Ontario ESA governs these workers, the following statutory minimums apply in the event of individual termination without cause:
Statutory Notice (ESA s.57):
- 1 week per year of service, up to a maximum of 8 weeks
- Applies after 3 months of employment
Severance Pay (ESA s.64):
- 1 week per completed year of service (pro-rated for partial years)
- Only triggered if the employee has 5 or more years of service AND the employer's Ontario payroll is $2.5 million or more (both conditions apply)
- Maximum: 26 weeks of severance pay
Group Termination Notice: Under both the Ontario ESA and any CBA provisions, if your employer terminates 50 or more employees within a four-week period, extended notice periods apply. Workers affected by plant closures or mass layoffs may be entitled to substantially longer notice periods.
Common Law Notice
Separate from the statutory minimums, employees may have entitlements at common law that significantly exceed ESA amounts. Courts have awarded notice periods of roughly one month per year of service for many employees. The statutory minimums represent a floor, not a ceiling. If you are facing termination, consult a labour lawyer before signing any release.
CBA-Specific Protections
Unifor master agreements contain additional job security provisions, including:
- Product and investment commitments (e.g., Windsor Assembly EV retooling, Oakville EV plant conversion)
- EV transition income security provisions for affected workers
- Preferential hiring and transfer rights during plant transitions
These protections go beyond what provincial legislation provides and are a key reason why collective bargaining matters for long-term job security.
CPP, EI and Benefits
Canada Pension Plan (CPP)
As Ontario employees, auto workers contribute to the federal Canada Pension Plan:
- Employee CPP contribution rate: 5.95% on pensionable earnings between the basic exemption ($3,500) and the Year's Maximum Pensionable Earnings (YMPE, approximately $71,300 in 2025)
- Maximum employee CPP contribution: approximately $4,034 per year (2025)
- CPP2 (second additional CPP): 4% on earnings between the YMPE and the Year's Additional Maximum Pensionable Earnings (YAMPE, approximately $81,900 in 2025) — maximum approximately $426 per year
Employment Insurance (EI)
- Employee EI premium rate: 1.64% on insurable earnings up to the maximum insurable earnings ceiling (approximately $65,700 in 2025)
- Maximum annual employee EI premium: approximately $1,078 per year
- Employer EI premium: 1.4 times the employee rate
Employer Pension Improvements (Major Win)
One of the most significant gains in these agreements was the restoration of defined-benefit pension coverage:
- Workers hired on or after September 20, 2016 who were enrolled in the Defined Contribution (DC) plan were transitioned to the DBplus Defined Benefit pension plan, effective January 1, 2025
- All new hires going forward are enrolled in the DBplus plan
- For existing DB members, monthly pension benefit rates increased:
- Production workers: $68.60 → $73.60 per month per year of service
- Skilled trades workers: $81.60 → $87.60 per month per year of service
- The "30-and-Out" monthly pension (Ford-confirmed, pattern applies across the three) increased from $3,545 to $3,795 per month for production workers
Health and Supplemental Benefits
These agreements also delivered substantial improvements to the extended health plan:
- The quarterly health deductible ($97) was eliminated entirely
- Glucose monitoring coverage: $1,600 → $4,000 per year
- Massage therapy annual maximum: $200 → $300
- Physiotherapy: $200 → $400, with the doctor's note requirement removed
- Legal services and dependent scholarship eligibility: 8 years seniority → 1 year
Key Changes in This Agreement
The 2023/2024 Unifor auto agreements represent a generational shift in the conditions of auto work in Canada. Here are the headline changes:
1. Wage parity with — and beyond — US autoworkers. Following the UAW's major wins at the Detroit Three in the United States, Unifor negotiated Canadian wages that now exceed comparable US rates by approximately $11 per hour (roughly 35%) when measured at comparable seniority levels.
2. DB pension restored for new hires. After years of new hires being enrolled in an inferior Defined Contribution plan, the return to defined-benefit pensions for post-2016 hires is a historic reversal of a concessionary trend that had affected the broader private-sector pension landscape.
3. COLA reactivated. The Cost of Living Allowance was suspended during earlier rounds of bargaining when companies were in financial distress. Its reinstatement (effective December 2024) provides ongoing wage protection against inflation.
4. Accelerated wage progression. Halving the progression timeline from 8 years to 4 years dramatically improves the earnings trajectory for newer workers, reducing the two-tier wage gap that had grown over previous rounds.
5. Two new paid statutory holidays. Family Day (third Monday in February) and the National Day for Truth and Reconciliation (September 30) were added to the holiday schedule, bringing covered workers to 11 statutory holidays per year.
6. EV transition security. Product allocation and investment commitments were embedded in the agreements to provide assurance that Canadian plants will participate in the electric vehicle transition, protecting jobs at Oakville, Windsor, and Ingersoll through the agreement period and beyond.
How to Use This Free Calculator
The interactive calculator embedded on this page gives you an instant estimate of your take-home pay, overtime earnings, vacation entitlement, termination entitlements, CPP and EI contributions, and statutory holiday value — all based on the current Unifor auto sector pay grid and applicable Ontario/federal employment standards.
Tab 1 — Wages & Tax: Enter your hourly rate and hours worked per pay period to see your estimated gross-to-net breakdown after CPP, EI, and federal income tax. Note that Ontario provincial income tax is not included; for a full picture, use the CRA's online tax estimator or consult a tax professional.
Tab 2 — Overtime & Premiums: Enter your base hourly rate, regular hours, overtime hours, and any shift premiums (afternoon at $0.86/hr, midnight at $1.12/hr) to calculate total weekly earnings including all differentials.
Tab 3 — Vacation Pay: Select your years of service and annual earnings to calculate your vacation pay entitlement under Ontario ESA minimums and CBA-enhanced tiers.
Tab 4 — Notice & Severance: Enter your years of service and weekly earnings to estimate your statutory termination notice and potential severance pay under Ontario ESA sections 57 and 64.
Tab 5 — CPP & EI: See your annual CPP (including CPP2) and EI contribution amounts, plus the employer's share, based on your annual insurable and pensionable earnings.
Tab 6 — Statutory Holidays: View all 11 standard statutory holidays and calculate their value at your hourly rate — including the 2.5× premium if you are required to work on a stat day.
Summary
The Unifor auto sector agreements covering the 2024–2026 period represent a watershed moment for Canadian manufacturing workers. From the largest wage increases in a generation to the restoration of defined-benefit pensions for new hires, from accelerated progression timelines to enhanced health benefits, these agreements set a new standard for what unionised manufacturing workers in Canada can achieve. Use the calculator above to understand your personal entitlements, and reach out to your local union representative if you have questions about how any provision applies in your specific situation.
Calculations are indicative only and do not constitute legal advice. Employment standards vary by province and whether you are federally regulated. For specific advice, contact the Canada Labour Program (1-800-641-4049), your provincial Employment Standards office, or a labour lawyer.
