Unifor members win ‘historic’ $15 million arbitration award in severance pay dispute

By Anosha Khan ·

Law360 Canada (February 14, 2025, 5:02 PM EST) -- Unifor has announced it has won what it calls a “historic arbitration award” of about $15 million for 200 of its union members who worked at Wingham, Ont.-based automotive exhaust manufacturer Wescast Industries. The union and the company were involved in a nearly two-year dispute regarding severance and termination pay.

In the decision, Unifor said that Toronto-based arbitrator Scott G. Thompson found that Wescast violated its obligations to pay workers enhanced severance and termination pay, which was outlined in the collective agreement and under Ontario’s Employment Standards Act. The $15 million amount also includes interest penalties.

“We simply cannot overstate the scale or importance of this victory — it is one of the largest and most significant wins for our members who deserve our deepest gratitude for their courage and persistence in this nearly two-year long fight,” said Unifor national president Lana Payne in a Feb. 14 statement.

She said the outcome will set an important precedent for future disputes, sending a strong message to employers that may attempt to circumvent collective agreements or labour laws.

Wescast operated a casting plant for more than a century in Wingham. In 2023, its overseas owner, China-based Bohong Industries Group, decided to shut down the plant, impacting  approximately 200 Unifor Local 4207 members employed there.

The plant primarily cast vehicle engine manifolds for customers including Ford, GM, Volvo and others. Unifor said Wescast was “a household name in Wingham” as its workforce was multi-generational and the town's community centre carried the company's name.

“I am proud that our legacy as Wescast workers is that we stood up for ourselves, took this fight head-on and won a significant victory that not only benefits us, but all workers across Canada,” said Unifor Local 4207 plant chair Joel Sutton.

During the two-year dispute, the union said, its membership, elected representatives and numerous staff engaged in efforts to hold the company and its owners accountable, including applying public pressure, holding a mass rally, writing letters to the Ontario premier and provincial minister of labour and bringing workers to lobby the provincial government.

Counsel for Unifor was Laura Sullivan.

Counsel for Wescast Industries was Philip Wolfenden of Shields O'Donnell MacKillop LLP.

Wescast, which still operates other facilities in Wingham, did not respond to a request for comment by press time. 

If you have information, story ideas or news tips for Law360 Canada on business-related law and litigation, including class actions, please contact Anosha Khan at anosha.khan@lexisnexis.ca or 905-415-5838.