(The following article is from the July 1-31, 2009, issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $25/year, or $12 low income rate; for U.S. readers - $25 US per year; other overseas readers - $25 US or $35 CDN per year. Send to: People's Voice, c/o PV Business Manager, 133 Herkimer St., Unit 502, Hamilton, ON, L8P 2H3.)
By Liz Rowley, Ontario leader of the Communist Party

PV Ontario Bureau

Hamilton - Strikers at National Steel Car have just rejected another offer from the company that continues to seek wage and benefit cuts, after three months on the picket line.

     "We're not going back until we get a fair contract," strikers told People's Voice on June 21.

     The only freight rail car manufacturer in Canada forced its workers out on April 6 after demanding a 25% wage and benefit cut, the elimination of seniority rights, and a four-day work week.  Outraged, the workers rejected the offer by a vote of 95%, saying they had already taken a pay cut with the imposition of the four day week two weeks earlier.

     "Is this a strike or a lock-out? It's a lock-out, but it's a strike," picketers said, asking they not be identified, fearing reprisals when they go back to work.

     Citing a significant drop in orders, Steel Car CEO Greg Aziz told workers the situation was the same as the auto industry, and the cost of labour, estimated at $31 an hour, had to drop.

     But while he was crying poverty, Steel Car's parent company, National Industries, had invested $350 million in a new plant in Alabama, which workers are concerned is going close the Hamilton operation sooner or later. More than half the current work force is on long-term layoff, and 1700 have been permanently laid off since 2006.

     The average hourly wage is $20/hour. An additional bonus of approximately $3.50/hour with speed-up yields increased production. Workers say the bonus system is the cause of many horrific accidents and deaths in the plant, and the company regularly cheats workers by paying out less than is earned on the bonuses.

     "They should do away with the bonus system - it's wrong, it's arbitrary and they can't keep track of it - and just pay us $24 an hour," said one striker.

     But the company had other plans, negotiating a work-sharing deal with the federal government whereby workers work a four day week, and eventually qualify for Employment Insurance. Meanwhile the company cuts its payroll costs by 20%.

     "There's nothing in our contract about a four day work week," said one angry striker, pointing out that the short pay doesn't cover the bills. "There's a 40 hour work week in Ontario. Where did four days come from?"

     The change will also leave workers short or ineligible for pension credits because of previous and continuing layoffs, while reducing already inadequate pension payouts to retirees and threatening those on the verge of retirement. Their union, Local 7135 USWA, wants to reduce the number of hours required to get the pension credits, and increase pension payouts. The pension plan has a current surplus of $43 million from which the company has "borrowed" extensively. Some say the funds have gone into the new house built by Aziz, literally "a castle... his barn's bigger than my house."

     In mid-June, almost 10 weeks out, workers rejected a second offer by almost 70%. This time the employer was offering a 10% pay cut. Now the word is the company is offering a wage freeze.

     The strikers are deeply angry with just about everything about this employer. And it's a visceral anger. "It's all about money. They don't give a shit about us." And the epithets fly.

     "They think they're going to starve us out, but they forget that people adjust. We're not going back until they take all this off the table."

     The strikers may be closer to a settlement. National Industries has had a lot of orders in recent weeks - too many to handle in Alabama where machinery is still being installed. That's part of the reason Aziz has been forced to backtrack on the wage and benefit cuts, say strikers.

     Getting back to work with a living wage and benefits, an intact seniority system, a five day work week with 40 hours pay, and a pension plan that benefits workers is the main objective now.

     The strike has the support of the Hamilton Labour Council, USWA locals including Local 1005 Stelco (US Steel), and the Communist Party.

     Communist Party spokesperson Bob Mann said Hamilton City Council should speak up and demand the federal government take action to protect Steel Car workers and the jobs hanging in the balance.

     "This is the race to the bottom, and it should be illegal", he said, adding the CPC continues to fight for plant closure legislation, and a labour of rights to protect workers from employers like NSC.