Approximately 1,200 employees at National Steel Car in Hamilton commenced a strike at midnight on Wednesday following the rejection of a contract proposal. United Steelworkers (USW) Local 7135 President Frank Crowder revealed that the vote, which occurred on Tuesday evening, witnessed an exceptional turnout with around 91% participation. The contract was turned down by a significant margin, with 79% voting against it.
Crowder highlighted that the workers are demanding increased wages and seek union involvement in an incentive scheme that they perceive as risky. He emphasized that the company’s wage increments do not even match inflation rates. Michael Schram, a welder and union steward at the facility, expressed dissatisfaction with his current compensation, deeming it insufficient for a decent living. Schram also raised concerns about inadequate pension provisions, especially for employees nearing retirement age.
The contentious incentive program at National Steel Car rewards employees with an additional 25% of their wages if they meet production targets but accept lower base pay. Crowder mentioned that while the program was previously managed fairly, recent unattainable production goals have caused disruptions. Notably, the union has no input on the scheme as per the existing collective agreement.
In a previous strike in 2023, lasting 41 days, workers secured a 13% wage hike. However, Crowder revealed that some employees went for extended periods without the extra 25% pay, resulting in a substantial loss of expected earnings. He underscored the negative impacts of the program, including potential safety risks and rushed work practices that could lead to fatalities and injuries.
The union is open to resuming negotiations after the company allegedly terminated talks abruptly. National Steel Car declined to provide a comment, citing the unavailability of their spokesperson. The workers’ concerns center around the need for protective language in the contract to safeguard their wages from the perceived dangers associated with the incentive program.