Approximately 1,200 employees at National Steel Car in Hamilton commenced a strike starting at midnight on Wednesday following the rejection of a contract proposal. United Steelworkers (USW) Local 7135 President, Frank Crowder, reported a significant turnout for the vote held on Tuesday night, with about 91% participation. Crowder highlighted that the contract was turned down by a 79% majority.
The workers are advocating for increased wages and seeking union involvement in an incentive scheme they consider risky. Crowder expressed dissatisfaction with the company’s failure to meet inflation rates in terms of compensation. Michael Schram, a welder and union representative at the facility, emphasized the financial hardships faced by employees, citing inadequate salaries and pensions, particularly for older workers nearing retirement age.
An incentive program at National Steel Car, which offers a bonus of 25% on wages if production targets are met, has become a contentious issue. The program has been criticized for setting unrealistic production goals, leading to workers falling short of earning the additional pay. Crowder noted that some employees experienced wage losses due to unattained targets during a previous strike in 2023.
Crowder raised concerns about the adverse impact of the incentive program on worker safety, linking rushed job completion to workplace accidents and fatalities. The union is pushing for changes to protect members’ wages and overall well-being. Despite the strike, the union remains open to further negotiations, while National Steel Car declined to provide comments citing the unavailability of their spokesperson.