Toronto, Canada – Nestlé has successfully negotiated an end to the strike at its Sterling Road chocolate plant in Toronto, agreeing to a new three-year contract with its employees. This agreement marks the conclusion of a dispute that had led to a complete shutdown of the plant since May 5, 2024, when 461 workers walked out over pension pay issues.
Strike Background and Negotiations
The strike, which lasted for three weeks, saw significant disruption as negotiations initially made no progress. Workers, represented by the local trade union Unifor, demanded better pension plans and quicker access to the top rate of pay. The strike included a wide range of workers, from chocolate bar packers and machine operators to shippers, receivers, and general laborers in skilled trades.
Details of the New Contract
The new contract includes a structured wage increase over the three-year period:
- Year 1: 3.25% increase
- Year 2: 3% increase
- Year 3: 2.25% increase
In addition to wage hikes, the agreement brings substantial improvements to the pension plans:
- Non-skilled trades: Defined benefit pension plan increases by C$1 ($0.73) each year.
- Skilled trades: Pension plan increases by C$2 each year.
Enhanced Health Benefits
The contract also includes expanded health benefits for workers, which now cover tool allowances, vision, and dental care. Notably, employees over the age of 65 will gain access to health benefits for the first time.
Full-Time Positions and Shift Premiums
Moreover, fourteen contract employees with the highest seniority at the time of ratification will be transitioned to full-time positions with full benefits. Shift staff will see additional hourly premiums:
- Afternoon shifts: C$0.75 per hour
- Overnight shifts: C$0.90 per hour
Reactions from Union and Company
Eamonn Clarke, President of Unifor’s Toronto branch, local 252, expressed satisfaction with the new contract, stating, “This is a robust agreement that addresses the needs of our members, from monetary to health benefits. It continues to build on our efforts for job security and improved pensions. Our members are ready to get back to work.”
Nestlé echoed this sentiment in a statement sent to Just Food, stating, “We are pleased that a collective agreement has been reached with Unifor. We look forward to the continued success of the Toronto factory and are happy to have our valued employees back at work.”
The Sterling Road Factory
The Sterling Road facility is a key site for Nestlé, producing popular confectionary items like KitKat, Coffee Crisp, Aero chocolate bars, and Smarties. This is not the first instance of industrial action at the plant; a similar strike occurred in 2001, lasting 20 days over demands for better pensions and improved rates for new employees.
This resolution brings a sense of relief to both the company and its workforce, setting a foundation for continued growth and productivity at the Sterling Road plant. The successful negotiation underscores the importance of collaborative efforts in resolving industrial disputes and enhancing worker satisfaction.
Related: Nestlé’s Strategic Focus on the Aging Population
