More than 1,200 employees at National Steel Car in Hamilton have initiated a strike starting Wednesday midnight after turning down a proposed contract. United Steelworkers (USW) Local 7135 President, Frank Crowder, disclosed that the Tuesday vote saw an impressive turnout, with approximately 91% participation and a resounding 79% rejection of the contract.
Crowder articulated that the workers are advocating for increased wages and a say for the union in an incentive scheme that he labeled as “risky.” He highlighted that the company’s wage offers are below inflation rates, not meeting the employees’ financial needs.
Michael Schram, a welder and union steward at the plant, expressed dissatisfaction with his current salary, emphasizing that it is insufficient to sustain a livelihood. He pointed out that the existing pension plans are inadequate for long-term employees, citing over 200 individuals above 60 years who cannot afford to retire.
The central point of contention revolves around an incentive program at National Steel Car that permits employees to accept reduced pay in exchange for an additional 25% of their wages upon meeting production targets. Crowder stressed that the program’s productivity expectations have become unattainable, resulting in financial losses for workers. The union lacks authority over the program as per the existing collective agreement.
In a previous strike in 2023, National Steel Car workers secured a 13% wage hike following a 41-day standoff. Crowder highlighted instances where workers missed out on the extra 25% pay for several months, leading to a substantial wage reduction. He raised concerns about the link between the incentive program, work pressure, and the occurrence of fatalities and injuries on-site.
Notably, three workers lost their lives within a span of less than two years at National Steel Car, with additional incidents of severe injuries reported. Crowder emphasized the necessity of protective clauses in the contract to safeguard workers’ earnings from the perceived hazards posed by the incentive program.
Despite the strike, Crowder affirmed the union’s willingness to resume negotiations, noting the company’s abrupt departure from the bargaining table. National Steel Car declined to provide comments, citing the unavailability of their spokesperson.