Author: Batrak Oleksandr – Editor-in-Chief at Railway Supply
19.08.2026
CANADA: Around 1,200 employees at National Steel Car have been on a legal strike since August 12 due to disagreements over salaries, production bonuses, and workplace safety.
National Steel Car’s manufacturing facility in Hamilton, Ontario. Illustrative photo. Photo: .
According to United Steelworkers Local 7135, part of the disagreement involves an incentive program where workers earn an extra 25% of their base pay after reaching a certain production goal, as reported by CHCH News. The union claims that this structure forces employees to risk their personal safety to hit those targets. Members turned down the company’s latest proposal on August 11, with a turnout of 91% and about 80% voting against it.
Don’t miss… Canada Steel Rail Rebate Covers 50% of Costs
A recorded history of safety issues at the plant
Three workers lost their lives at National Steel Car’s Kenilworth Avenue facility during a span of 21 months from September 2020 to June 2022. Additional court cases have highlighted more enforcement issues since then. The company faced fines totaling $240,000 after a welded bulkhead panel fell on an employee in June 2022 and another $50,000 for a separate serious injury three days earlier involving scrap metal being handled with a crane magnet. In 2025, National Steel Car was fined an additional $90,000 following an October 2022 incident where a hydraulic clamp retracted into an unguarded pinch point. These incidents are distinct from the concerns related to the incentive program currently being discussed in the labor dispute.
What to keep an eye on
Look out for any updates regarding contract negotiations resuming at National Steel Car. The union has stated that its bargaining team is ready and that a mediator from the Ontario Ministry of Labour has been assigned; however, active mediation had not started as of August 18. Another significant point is whether modifications to the production incentive program will be included in any agreement along with wage increases being considered.
News on railway transport, industry developments, and railway technologies from Railway Supply that you might have missed:
Don’t miss… Canadian National Railway Company Plans $2.44B Investment
