Home » IMT strike set to end after company gives up on two-tier pay plan

IMT strike set to end after company gives up on two-tier pay plan

by Local Journalism Initiative
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Nine weeks after walking off the job, 200-plus workers at a defence industry supplier in Ingersoll, Ont., will return to work after reaching a new four-year deal with their employer.

The union is calling the new collective agreement a “significant victory on wage equality” at IMT Defence, – a manufacturer of projectiles and vehicle systems – after 79 per cent of the 208 members of United Steelworkers Local 2918 voted in favour of the contract Tuesday evening.

Following a 98 per cent strike vote on June 3, the union succeeded at eliminating the company’s two-tier pay structure, which the union said, “discriminated against new hires and existing employees with limited seniority.”

“I’m very happy with this and it’s building for the future,” said 13-year IMT employee and union president, Jay McDonnell. “This is going to help all future members in this local succeed and make a living wage.”

According to the United Steelworkers release, under the previous agreement new hires were paid about 25 per cent less than senior workers, amounting to a wage disparity of $8 an hour and couldn’t achieve the pay rate of senior employees.

The new agreement includes a six-year wage progression for all members so each employee will have an opportunity to earn the maximum wage, plus a general wage increase of nine per cent during four years, a $1,000 signing bonus and improved benefits, said the union’s release. A weekend work schedule with two 12-hour shifts equalling 42 hours of pay also has been added. The shift eliminates the need for mandatory overtime while enticing workers to accept steady weekend work while meeting IMT’s staffing needs.

In a statement from the company, IMT said, “Our unionized workers came to a new, multi-year labour agreement to ensure a bright future for the company and its employees.

“While it’s regrettable that our bargaining partners decided to take eight weeks to get a deal that could have been achieved in good faith without disruption, it’s positive for all involved that this unnecessary distraction is now behind us.”

McDonnell said he couldn’t prouder of the solidarity showed by union members and the commitment “to the principle that everyone should be treated equally on the job.”

The last time workers walked off the job was 2005 and lasted for 13 weeks.

Workers are set to return to work on Aug. 12 due to a regular shutdown next week.

By Brian Williams, Local Journalism Initiative Reporter

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