An arbitrator has ordered Wescast Industries Inc. to pay more than $11.5 million in termination and enhanced severance pay to 251 workers who were laid off from the company’s casting facility in Wingham, Ont.
The ruling stems from a dispute between the employer, a subsidiary of Bohong Industries Group, and Unifor Local 4207 over whether employees laid off from Wescast Casting Wingham were entitled to termination and enhanced severance pay under their collective agreement.
The arbitrator directed Wescast to pay the specified amounts by June 20, 2025, along with pre-judgment and post-judgment interest calculated under Ontario’s Courts of Justice Act.
Payment structure and recipients
The award covers four categories of affected workers: active production employees, active maintenance workers, those on long-term disability, and workers receiving Workplace Safety and Insurance Board benefits.
Active production workers make up the largest group, with 125 employees receiving amounts ranging from approximately $10,400 to $133,300. The total for this category reaches nearly $7.9 million.
Active maintenance employees, numbering 25, will receive payments between roughly $11,400 and $167,300, totalling approximately $2.5 million.
Nine workers on long-term disability are entitled to payments ranging from about $61,400 to $113,200, with their category total reaching approximately $831,400.
Two employees receiving WSIB benefits will receive payments of $96,300 and $169,100 respectively, totalling about $265,300.
Trust arrangements
The arbitrator established specific payment structures for different employee groups. Amounts for active maintenance and active production workers – totalling more than $10.4 million – must be paid to “Unifor in Trust” for distribution to the named individuals.
Payments for workers on long-term disability and those receiving WSIB benefits – totalling approximately $1.1 million – must be paid to “the Director of Employment Standards, in Trust” for each named individual.
Interest calculations
Wescast must pay pre-judgment interest on all specified amounts at the rate applicable under Ontario’s Courts of Justice Act from April 12, 2024, to Feb. 13, 2025.
The company must also pay post-judgment interest at the same rate, compounded annually, from Feb. 14, 2025, onwards until payment is made.
Legal process and settlement
The arbitration hearing spanned multiple dates from May 2024 through January 2025, with additional mediation sessions in March and May 2025.
The case involved two policy grievances filed by the union – one dated June 15, 2023, and another from April 15, 2024.
The parties reached a settlement agreement on March 21, 2025, which was subsequently amended on March 28 and May 30, 2025. The arbitrator’s award incorporates the terms of this settlement.
Collective agreement coverage
The dispute centered on entitlements under the collective agreement between Wescast and Unifor Local 4207, which had a term from July 1, 2020, to June 30, 2023.
The arbitrator determined that the laid-off employees were entitled to both termination pay and enhanced severance pay in accordance with the collective agreement provisions.
Individual payment amounts
Among active production workers, L.B. received the highest individual award at $133,279.76, while several employees received amounts in the $20,000 to $30,000 range.
In the active maintenance category, M.S. received the largest individual payment at $167,292.80, while the smallest payment in this group was $11,433.78 to K.M.
For workers on long-term disability, S.P. received the highest amount at $113,232.12, while D.E. received the lowest at $61,408.87.
Among WSIB recipients, T.B. received $169,060.09 and D.L. received $96,261.96.
Enforcement timeline
The arbitrator’s order requires Wescast to make all payments to both trust arrangements, including pre-judgment and post-judgment interest, on or before June 20, 2025.
The ruling incorporates Schedule A, which details the specific payment amounts for each named individual across all four categories of affected workers.
For more information, see Unifor v Wescast Industries Inc., 2025 CanLII 49859 (ON LA).
