Approximately 1,200 employees at National Steel Car in Hamilton initiated a strike starting at midnight on Wednesday following the rejection of a contract proposal. United Steelworkers (USW) Local 7135 President, Frank Crowder, revealed that a vote held on Tuesday saw a significant turnout, with around 91% of workers participating, resulting in a 79% rejection of the contract offer.
The primary concerns of the workers revolve around increased wages and a desire for the union to have a voice in an incentive scheme deemed “risky” by Crowder. According to him, the company’s wage increments are not keeping pace with inflation rates. Michael Schram, a welder and union steward at the plant, expressed dissatisfaction with his current wage level, highlighting the financial challenges faced by long-serving employees, especially regarding pensions.
The ongoing dispute is centered on an incentive program at National Steel Car that allows employees to opt for lower wages and potentially earn an additional 25% based on production output. Crowder noted that while the program was previously managed fairly, recent adjustments have set unattainable production targets, resulting in workers missing out on the additional pay. This issue led to a 41-day strike in 2023, culminating in a 13% wage increase.
The union is particularly concerned about the impact of the incentive program on worker safety, citing instances of employees rushing through tasks or compromising safety protocols to meet production goals. Tragically, the company has experienced several work-related fatalities in recent years, further highlighting the urgency of addressing safety concerns and protecting workers’ rights.
Despite the impasse, Crowder emphasized the union’s willingness to resume negotiations, expressing disappointment over the company’s decision to leave the bargaining table. National Steel Car declined to provide a statement, citing the unavailability of their spokesperson.
