Ford Motor Company has reached and ratified a labor agreement with the union representing its Canadian workforce. The deal provides wage increases and bonus payments for tens of thousands of employees, while the automaker has pledged additional investment in an engine plant located in southwestern Ontario.

In a released statement, Ford outlined that hourly workers will receive a 9% wage increase over the three-year term of the agreement. Eligible full-time permanent employees are set to receive a C$10,000 contract ratification bonus, while temporary workers will be granted C$2,000.

Beyond a previously planned C$550 million investment for the Oakville Assembly Plant, which is slated to expand production of larger pickup trucks, this new collective bargaining agreement secures an additional C$700 million (equivalent to $499 million) for the Essex Engine Plant in Windsor, Ontario.

Ford stated that the new funds directed to the Essex facility will be used to "increase 5.0L engine capacity" and support the production of larger displacement engines. A significant volume of components manufactured at this plant is shipped to Ford's various vehicle assembly plants in the United States.