Union calls for help from Ontario government, saying employer 'continues to evade its responsibilities'
![Unifor claims company owes workers $10 million in termination, severance pay](https://cdn-res.keymedia.com/cdn-cgi/image/f=auto/https://cdn-res.keymedia.com/cms/images/ca/126/0379_638594125191322509.jpg)
Ontario employer Wescast Industries and its owner, China-based Bohong Industries Group, owe 200 workers about $10 million in termination and severance pay – and they are opting not to pay, according to Unifor.
This comes after the workers lost their jobs at the Wingham, Ont. facility in July 2023. The workers represented by – Unifor 402 – became eligible for termination and severance pay in April 2024, says the union.
“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.”
Now, the union is calling for help from the Ontario government.
“As Wescast continues to demonstrate a lack of integrity and a lack of respect for the arbitration process, we are requesting a meeting with you as soon as possible to discuss this situation,” said Payne in a letter addressed to Ontario Premier Doug Ford and David Piccini, minister of labour, immigration, training and skills development.
An Ontario worker was entitled to statutory termination pay and severance pay after her employment contract was frustrated by a pattern of absenteeism caused by multiple illnesses and an injury, an arbitrator previously ruled.
Previously efforts to make Wescast pay
Unifor maintains that Wescast Industries has a clear obligation to pay its members, but the employer “continues to evade its responsibilities”.
Previously, 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.
“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.”
Previously, the Ontario Superior Court of Justice found unenforceable contracts that state employers have the right to dismiss the employee “at any time” or in your “sole discretion”, as long as the employers provide notice or severance.