More than 1,200 employees at the National Steel Car facility in Hamilton initiated a strike starting at midnight on Wednesday after turning down a proposed contract. United Steelworkers (USW) Local 7135 President, Frank Crowder, revealed that a vote held on Tuesday evening had an exceptionally high turnout rate. “Approximately 91% of our workforce participated in the vote, with 79% rejecting the contract,” he stated. The striking workers are advocating for higher wages and demanding union involvement in an incentive scheme they deem hazardous.
Crowder expressed discontent with the company’s failure to keep up with inflation rates in terms of wages. Michael Schram, a welder and union representative at the plant, emphasized that the current salary is insufficient to sustain a livelihood. “We are aware of the substantial profits they make,” Schram mentioned from the picket lines. He also highlighted the inadequacy of pensions for long-serving employees, noting that over 200 workers above 60 years old cannot afford to retire.
The contentious issue revolves around an incentive program at National Steel Car allowing employees to accept reduced pay in exchange for an additional 25% of their wages based on productivity. While the program was previously managed fairly, recent production targets have become unattainable for workers, according to Crowder. The union lacks influence over the program as per the existing collective agreement. In 2023, National Steel Car employees staged a 41-day strike that concluded with a 13% wage hike.
Crowder cited instances of workers enduring months without the additional 25% pay, translating to a loss of anticipated earnings. He criticized the predicament where workers are compelled to forgo breaks or compromise safety to secure their bonuses. Tragically, three workers lost their lives at the plant within a span of less than two years, with one more suffering critical injuries in 2022.
The union is advocating for protective language in the contract negotiations to shield members from the potential hazards of the incentive program. Crowder expressed willingness to resume bargaining talks after the company abruptly terminated the negotiations. National Steel Car declined to comment, citing the unavailability of their sole spokesperson.
