Dispute with China-owned Wescast Industries intensifies as company continues to withhold millions of dollars from workers

WINGHAM, ON, Aug. 15, 2024 /CNW/ - Unifor is intensifying efforts against Wescast Industries and its owner, Bohong Industries Group based in China, as the company continues to withhold approximately $10 million in termination and severance pay from 200 workers who lost their jobs at the Wingham, Ontario facility in July 2023.

Wescast worker Laura Collison holds a sign reading "Shame on Wescast" in front of a Wescast Industries Inc. sign in Wingham, Ontairo. (CNW Group/Unifor)

"This is not just a violation of laws and collective agreement language, it's a complete betrayal of Wescast workers and their families who built this company over many decades," said Unifor National President Lana Payne. "Basic labour standards are being trampled on in small-town Ontario by a corporation who clearly believes it can walk away from its obligations to workers and their families with impunity."

The union maintains that Wescast Industries has a clear obligation to pay Unifor 4207 members who became eligible for termination and severance pay in April 2024. Unifor estimates the amount to total approximately $10 million.

Given the situation, Unifor requested urgent support from the Ontario Director of Employment Standards, Melissa Faber, and the Ontario Ministry of Labour on April 17, 2024. The union also held a public rally the following week at the facility urging the company to follow Ontario labour law and pay workers what they are owed. Despite these efforts, Wescast continues to evade its responsibilities.

"This is not just about one community or one group of workers," said Unifor Ontario Regional Director Samia Hashi. "It's about holding corporations accountable, especially those who think they can exploit Canadian workers without consequence."

The dispute deepened after Wescast informed the province that the matter between the union and company was subject to the grievance and arbitration procedure outlined in the collective agreement. However, once in front of the arbitrator, the company continued to demonstrate a complete lack of integrity when they argued the collective agreement was expired and therefore the arbitration process did not apply. In a decision released on August 1, 2024, the arbitrator rejected Wescast's objection.

"The Wescast dispute is a stark reminder, especially amid ongoing efforts by China to enter the North American electric vehicle market, of the urgent need for stricter regulations and enforcement by all levels of government to protect Canadian workers from companies that attempt to undermine fundamental labour rights," added Payne.

In a letter released today Unifor has requested a meeting with Premier Doug Ford and Minister of Labour David Piccini to discuss the situation in Wingham.

Unifor is Canada's largest union in the private sector, representing 320,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad and strives to create progressive change for a better future.

SOURCE Unifor

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