Home Featured Unifor ramps up pressure in dispute over $10 million in unpaid severance with Wescast

Unifor ramps up pressure in dispute over $10 million in unpaid severance with Wescast

by HR News Canada
0 comments

Unifor is ramping up its efforts against Wescast Industries and its parent company, China-based Bohong Industries Group, as the auto parts manufacturer continues to withhold approximately $10 million in termination and severance pay from 200 former employees, according to the union.

These workers, who were employed at Wescast’s Wingham, Ont., facility, lost their jobs in July 2023.

The union asserts that Wescast has a clear legal obligation to pay the owed amounts, which became due in April 2024. Despite ongoing pressure from Unifor, including a public rally and appeals to the Ontario Ministry of Labour, the company has yet to fulfil its obligations, it said.

“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 Lana Payne, Unifor’s national president. She added that basic labour standards are being disregarded by Wescast, leaving the affected workers and their families in financial limbo.

The dispute escalated further after Wescast argued before an arbitrator that the collective agreement had expired and therefore the arbitration process did not apply, according to Unifor. However, the arbitrator rejected this claim in a decision released on August 1, 2024, reinforcing the union’s stance.

Unifor Ontario Regional Director Samia Hashi emphasized the broader implications of the dispute, stating, “This is not just about one community or one group of workers. It’s about holding corporations accountable, especially those who think they can exploit Canadian workers without consequence.”

Unifor has requested a meeting with Ontario Premier Doug Ford and Minister of Labour David Piccini to discuss the situation. The union is also calling for stricter regulations and enforcement to protect Canadian workers, particularly in light of increasing investments from China in the North American auto industry.

Unifor, Canada’s largest private sector union, represents 320,000 workers across various industries.

You may also like