Production of 5.4-litre engines at Ford's Essex Engine Plant in Windsor, Ont., will continue for at least three years, saving approximately 120 jobs.
Ford announced during the last round of collective bargaining, held in 2012, that it would phase out production of the 5.4-litre by the end of this year. The end of production would have affected about 200 workers.
Production won't end, but it will be cut back. That will result in the loss of 82 jobs.
Chris Taylor, the president of Unifor Local 200 representing Ford workers, doesn't want to see more layoffs.
He said the decision to extend production of the engine and a reduction in job losses is better than ending production all together.
"This is some of the best news we've had in quite some time, especially considering for the last two years we've been preparing our members [because] this program was going to go away," Taylor said.
The 5.4-litre engine could be produced for another five years, Taylor said.
More than 400 ford workers remain laid off in Windsor.
The company has not announced any new products for its operations in the city.
Union leaders continue lobbying the company for more products and work.