An arbitrator has ruled that Wescast Industries Inc. must pay about $15 million in severance and termination pay to nearly 200 former employees, ending a prolonged dispute between the company and Unifor — according to a press release issued by the union.
The ruling determined that Wescast, which operated a casting plant in Wingham, Ont., violated both its collective agreement and Ontario’s Employment Standards Act by failing to provide enhanced severance and termination pay to unionized workers after shutting down operations in 2023, Unifor said.
“This ruling affirms what we have said all along—that Wescast blatantly violated the collective agreement in addition to Ontario labour law,” said Unifor Ontario Regional Director Samia Hashi. “Our union would not stop until every worker is paid what they are owed, plus interest.”
The arbitration decision marks a significant resolution to a nearly two-year battle following the closure of the Wescast plant, which was owned by Bohong Industries Group, a Chinese firm. The facility, which cast vehicle engine manifolds for major automakers such as Ford, GM, and Volvo, had been a fixture in Wingham for more than a century.
The plant’s closure left hundreds of workers without jobs, sparking public protests, advocacy efforts directed at the Ontario government, and legal action led by Unifor. The union contended that Wescast’s owners failed to meet their legal obligations to workers under both the collective agreement and provincial law.
“Although it was heartbreaking to be treated so disrespectfully by this company and see our basic rights trampled on, in the end, it was heartening to see all of us united like never before,” said Joel Sutton, plant chair for Unifor Local 4207.
The $15 million award, which includes interest penalties, will be distributed among the affected workers, it said.
Unifor, Canada’s largest private-sector union, represents 315,000 workers across various industries.
