More than 1,200 employees at National Steel Car in Hamilton commenced a strike at midnight on Wednesday after turning down a contract proposal. United Steelworkers (USW) Local 7135 President, Frank Crowder, reported that a vote occurred on Tuesday evening with a high turnout rate of approximately 91%. The majority, around 79%, voted against the contract. Workers are seeking increased wages and union involvement in a concerning incentive scheme, which Crowder labeled as “risky.” He criticized the company for failing to meet inflation rates in their wage offers.
Michael Schram, a welder and union representative at the plant, expressed dissatisfaction with his current salary, stating it is insufficient to sustain himself. Schram, who has been with National Steel Car for 15 years, highlighted the inadequacy of pensions for older workers, noting that over 200 employees above 60 years old cannot afford to retire.
Crowder raised concerns about a controversial incentive program at the company where employees can opt for lower pay in exchange for a 25% bonus based on productivity levels. While the program was previously managed fairly, recent production targets have become unattainable, resulting in workers missing out on the extra pay. The union has no influence over this program due to the existing collective agreement. In 2023, National Steel Car workers staged a 41-day strike that concluded with a 13% wage hike.
The union leader emphasized the adverse impact of the incentive program on workers, citing instances where employees had to work through breaks or compromise safety to meet production quotas and receive the additional compensation. Crowder linked this pressure to work-related fatalities and injuries, noting three deaths and one severe injury at the company within a span of two years. He urged for protective measures in the contract negotiations to safeguard workers from the perils of the incentive program.
Crowder expressed the union’s willingness to resume negotiations after the company abruptly terminated talks. National Steel Car declined to provide a comment, citing the unavailability of their spokesperson.