The strike that defended the next generation

In the summer of 2005, 1,000 professionals from the Society’s Hydro One Local participated in the first strike in the Society’s history.

Members united together against an employer determined to rewrite the collective agreement in the wake of neoliberal restructuring of the energy sector.

Strikers stage an information picket at a Liberal Party event in Woodstock

Hydro One and its widely despised then-CEO Tom Parkinson underestimated the dedication and resolve of workers who would refuse to back down in the fight against two-tiered wages and benefits. After 105 days on the picket line, Society members successfully pressured Hydro One to accept binding arbitration. It was a victory in the eyes of many members seeking a fair collective agreement with a hostile employer. And it sent a message to employers everywhere: the Society is prepared to vigorously defend its hard-fought gains won over the years.

THE CONDITIONS THAT FORCED A STRIKE

Under the leadership of Progressive Conservative Premier Mike Harris and later Premier Ernie Eves, the Ontario energy sector underwent major restructuring in the 1990s and early 2000s. Ontario Hydro was a public asset, and conservatives were seeking to break it up into fragments so that its parts could be sold off to the private sector. When the Energy Competition Act took effect in 1999, Ontario Hydro was divided into five new entities, including the Ontario Hydro Services Company (OHSC), which is now Hydro One. Four of these companies were within Society jurisdiction.

While Ontario Hydro was a crown corporation, Hydro One became a corporate holding company. The government would retain ownership of Hydro One until the Wynne government privatized it in 2015, while maintaining a minority stake.
By breaking up Ontario Hydro into smaller parts, workers lost some leverage held through strength in numbers. By separating generation from transmission and distribution, dividing workers into several successor companies, the threat of collective job action was tamed. Hydro One could impose concessions without the threat of nuclear operators walking off the job.

“When they broke us up in ’99, we saw the writing on the wall,” explained Jim Botari, the Society’s chief picket captain during the 2005 strike.

“Now that the Society is fractured into four different companies, we don’t have the same bargaining power we used to have in the past.”

As outlined in the voluntary recognition agreement the Society achieved under the NDP Ontario Government in 1993, the Society had agreed to mediation-arbitration to resolve future collective agreement negotiations. When Ontario Hydro was broken up into the five successors, the Society was able to secure an extension to mediation-arbitration for five years, effective until 2005.

Picketers at Nanticoke Generating Station

Hydro One’s then VP of Labour Relations Steve Strome informed the Society in January 2002 that it would be terminating this arrangement for the next contract, which was to start in 2005. 2005 would be the first year of bargaining with the possibility of a strike or lockout.

The Society had never launched a strike before and historically took a non-confrontational approach to labour relations. This bolstered the confidence of Hydro One.

And yet, Society members would demonstrate that Hydro One had drastically underestimated them and their ability to organize dynamically in the face of significant concessions.

“Because we had been given notice two and a half years earlier, it gave us a lot of time to start to prepare our members,” explained Keith Rattai, the Local Vice-President of Hydro One during the strike.

In 2003, Tom Parkinson was hired as the company’s CEO, replacing its former CEO, Eleanor Clitheroe.

“We don’t know that his intention ever was to break to union, but he certainly saw us as the weak link,” said Rattai.
It was Parkinson’s arrogance, in addition to his lavish salary, that galvanized many members to stand up to him in the workplace.

Over the course of bargaining, Parkinson bypassed the union and sent an email out directly to Society represented employees with details about the deal the employer had proposed.

Rattai said this email called the bluff of the union, challenging its position. “Our members were insulted by that, and so they pushed back. That was something that took on a life of its own,” he said.

The union received several hundred emails in response to the message sent out by Parkinson. According to researcher and scholar Kendra Coulter, most of these emails expressed anger at the tone of Parkinson’s message, and renewed support for the Society.

In another poorly perceived power move, Parkinson fired dozens of upper management employees who did not belong to the Society. “Without notice, he walked them out the door, packed up their belongings, and sent them to their address,” said Rattai.

“That was also instrumental in motivating our membership because it sent a clear signal that this guy was rather ruthless”.
Parkinson had received a 35 percent increase in salary from 2004-2005. He took home $1.6 million in salary and benefits in 2005 and was the highest paid Ontario government employee that year. In the face of these facts, Hydro One was demanding major concessions from Society members.

Then-Local Vice-President of Hydro One Keith Rattai

STANDING UP FOR FUTURE GENERATIONS

On Jan. 5, 2005, the Society began two-party bargaining with Hydro One. It would last for three weeks. On Feb. 17, the parties asked that a conciliation officer be appointed to help assist with negotiations.

Hydro One was seeking to expand base hours of work from 35 to 39 hours a week, without additional pay, and increase its ability to contract out work. But it was the demands regarding new hires that left Society members most disgruntled.
The employer asked workers to accept a 10 percent pay decrease for new hires. They were also proposing a two-tiered benefits system, including a two-tiered pension.

The strike was very much rooted in solidarity for the next generation. It was this sense of responsibility to future workers that mobilized Society members into action.

“Some Society members were second or third generation Hydro employees. Their parents or grandparents worked at Ontario Hydro,” said Botari.

“We’ve got great post-retirement benefits that we want to protect. So how do we protect those? We protect the people who are coming after us,” he said.

According to Rattai, even though the concessions proposed didn’t affect current employees, members were offended by them. “They felt that they were being taken for granted and that the employer was trying to pull the wool over their eyes,” explained Rattai.

From March 17-23, 2005, the Society conducted a strike vote. An impressive 93 percent of eligible voters cast ballots, and of those, 98 percent voted to authorize strike action.

The union had sent a strong message to management that members were willing to show up in droves to support their bargaining team. The employer could hardly believe the results.

Despite the high strike vote, conciliation ended on March 30, without an agreement. On April 4, the Society filed a no-board report, positioning it for possible strike action.

In advance of an April 27 strike deadline, the employer forced a “final offer” vote under the threat of lockout, which was conducted by the Ministry of Labour. There was widespread resistance to Hydro One’s final offer, and this manifested on the ground in different ways. A caucus of young members wore “No 2-Tier” t-shirts to the vote. Ninety-five percent of voting members rejected the employer’s final offer.

DEMOCRATIC ENGAGEMENT DURING THE STRIKE

The strike was successful at mobilizing members and engaging them democratically. A Communication Action Network was created in the fall of 2004, and more than 90 members participated. Workplace issues were discussed, and members would go back to the workplace to consult with their colleagues on contract proposals. The families of workers were also engaged throughout this process. As highlighted by Coulter, “Spouses were invited to the meetings as it was understood that workers are not often autonomous beings, but are interwoven with partners and families, emotionally and financially.”

Having never been on strike before, the union did not, at first, have strike policies and procedures in place. But it prepared in the lead-up to negotiations. It tapped into the knowledge of other unions to develop strike policies, procedures, and a manual. Members were involved throughout this process.

The contract committee grew with increased member involvement, and this led to the development of member-driven subcommittees. Throughout strike preparations and during the strike, members were empowered to take leadership positions.

 "Throughout strike preparations and during the strike, members were empowered to take leadership positions."

Clear communication between the union and members was vital. When it became clear what management had put on the table, members knew they were taking the moral high ground to protect future workers.

The union knew it was important to build internally capacity to organize, and this led to hiring organizers from other unions with experience in strike mobilization and support. In 2003, the Society hired organizers from the Canadian Union of Postal Workers (CUPW) and Hotel Employees-Restaurant Employees (HERE). These organizers visited work sites and met with members on their breaks.

June Rowlands Park, Toronto - Information picket at then-MPP Michael Bryant's Ice Cream Social 

STRATEGIC ACTIONS

Once in a legal position to do so, the Society began to augment pressure on the employer. On May 9, it began a work-to-rule campaign, where members refused to work overtime and put limitations on the rotations they would accept. Later in May, members participated in a one-day walkout.

The first members out on strike were Society members at the Ontario Grid Control Centre (OGCC) and the Barrie Operations Centre.

“That really put a monkey wrench into the employer’s operations right from day one, because we weren’t allowing staff to get into there,” said Botari. The picket line caused major delays for non-striking employees trying to get into work. The employer tried using buses and helicopters to transport workers into the site.

“When we saw that happening, we knew we were being very effective with our picket lines,” said Botari.

On June 6, members from across the province joined their Barrie colleagues on strike, and eventually over 100 pickets were erected.

Pickets outside the Pickering and Darlington nuclear plants - where Hydro One had facilities - backed up traffic onto the 401 expressway, in what was a particularly impactful moment. Later that day, the Society and Hydro One were called into court to hear Hydro One’s injunction request.

“It showed our members that we can make a difference. We can impact the operations of the company even through we’re the engineers, supervisors, accountants and other professionals, and not a lot of frontline workers,” said Botari.

Hydro One facilities weren’t the only locations picketed. Striking Society members and allies engaged in secondary picketing, targeting industry actors who have ties to Hydro One.

“That really put pressure on Hydro One and the government when some of their suppliers and other industry leaders started feeling some pressure from us,” said Botari.

One of the secondary picketing locations targeted was the Nanticoke Generating Station, which was a coal-fired power station owned by OPG. The Society set up information pickets there on two occasions. The first picket, erected on June 24, was very successful. Many workers of the station refused to cross the Society’s picket line, causing the employer to shut down six of the facility’s units, reducing production by 2,000 megawatts of power. The event prompted national news coverage and a statement from then-Energy Minister Dwight Duncan.

That evening, OPG successfully obtained a temporary injunction. The court ruled that while the Society had the right to engage in information pickets at the site, plant employees were not obligated to stop and engage with picketers.

The event led to OPG suing Rattai for several million dollars. It was one of several lawsuits launched during the strike by various enterprises, including Hydro One, Stelco, and Texaco. They named Rattai, then-Vice-President of Membership Rod Sheppard, and/or then-president Andrew Muller as defendants. All of these lawsuits were eventually dropped.

The union used a variety of tactics to pressure the Dalton McGuinty government to use its influence to settle the strike. With strategic input from IFPTE organizers, strikers interrupted the Premier’s public appearances.

“We knew we were never going to convince Mr. Parkinson to settle the strike in a way that we could return to work in a reasonable way. So, we decided to refocus and put our energies on the actual boss, and that was the government,” said Rattai.

Strikers disrupted government photo ops, golf tournaments, and summer BBQs. Each appearance was key to grabbing media attention and framing the strike’s public narrative. The earned press coverage boasted the moral of strikers, and it augmented pressure on the Premier.

"Riled protesters faced off against North Bay city councillors, who reportedly blocked the convention doors during the boisterous protest."

Strikers targeted energy sector announcements. They met McGuinty in Kitchener where he commemorated a new plant opening, and they attended photo ops where McGuinty celebrated large wind farm projects.

“We knew that they were happening because his press secretary put out the information ahead of time, so we would always meet him at every one of his events with a large contingent of picketers and supporters,” said Botari.

Strikers highlighted how the government was putting the province’s electrical grid in jeopardy by forcing workers out on strike. Fairness was a central principle in discussions about bargaining.

On Aug. 17, Society members and their allies organized a 300-person sit-in at the Association of Municipalities of Ontario Convention held at Toronto’s Westin Harbour Castle hotel. Riled protesters faced off against North Bay city councillors, who reportedly blocked the convention doors during the boisterous protest. Protesters blocked the hotel’s walkway above the road that led to the convention hall.

More than 300 people participate in a sit-in at the Association of Municipalities of Ontario Convention held at Toronto's Westin Harbour Castle Hotel.

The action resulted in a meeting between Muller and Premier Dalton McGuinty.

Another major action saw Muller and others ejected from the Board of Trade office when they went to visit Parkinson at an event there. Some were carried out by their hands and feet.

Further pressure was put on the premier when strikers targeted a provincial by-election in the riding of Scarborough-Rouge River, distributing literature on the strike.

“I think Mr. McGuinty got tired of seeing us,” said Rattai. “He said, ‘I’ve seen more of you than I’ve seen of my wife, and that’s got to stop.’”

“We definitely had an effect on him.”

Other society bargaining units stood up to assist striking Society members. They attended picket lines and brought messages of solidarity to strikers, boosting morale.

Other labour groups, including regional labour councils, the Ontario Federation of Labour and labour unions like OPSEU, United Steelworkers, and the Power Workers’ Union responded to the Society’s requests for support.

Unions donated to the Society’s Benevolent Fund and pledged millions of dollars to the union that could be accessed, if necessary, to support the strike.

“As it turned out, we didn’t need it in the end, but It makes a difference knowing you have it,” said Rattai.

Allies across the labour movement mobilized for the strikers’ pickets and actions. Hydro One Society members learned that they were not alone.

And the strike, likewise, bolstered the confidence of other unions, including those in the private sector, who would one day face off against employers trying to undermine workers through generational divisions.

That Labour Day, Society strikers would lead the march in Toronto, marking the Society’s new, enduring relationship with the labour movement.

Fired Society members from the Hydro One strike lead the 2004 Toronto Labour Day parade

EMPLOYER RETALIATION

Hydro One saw that Society members were effective at disturbing their daily operations and winning the support of Ontarians. To put a chilling effect on strikers, the employer fired eight striking employees between Aug. 18-25, including one member of the bargaining team and current Society President Michelle Johnston. And between Aug. 22-29, 20 new grads, whose contracts were to begin after June 1, had their offer letters rescinded.

Strikers were surprised to see management fire members who they didn’t perceive as particularly disruptive. This made many members feel vulnerable, and it embarrassed some of Hydro One’s management, who saw employees like Johnston as leaders in their workplace.

“It took us some time to get people to say, ‘listen, we’re a union. They can fire people if they want while we’re on strike, but we’ll work to get people back,’” said Botari. “‘Nobody goes back until we all go back,’ was our motto at the end.” Members rebuilt confidence through solidarity.

After the strike ended, the Society continued to fight for the reinstatement of all those terminated. On Sept. 29, the eight terminated Society members were reinstated.

“After being terminated by Hydro One, I stayed dedicated to the strike and refused to be intimidated. I continued my role as a picket captain because I knew our objectives were principled,” said Johnston.

Sept. 13, 2005 - Victory rally held at the Royal York Hotel in Toronto

A HARD-FOUGHT VICTORY

Society members were ultimately successful at stopping Tom Parkinson and Hydro One’s full-throttle assault on the union.
For 105 days, strikers held their ground against the employer, and the vast majority of Society members – more than 90 percent – were still active on the picket line at the end of the strike.

On Sept. 12, Mediator William Kaplan recommended to the McGuinty government that the labour dispute be referred to arbitration. The Ministry of Energy requested Hydro One and the Society to undergo arbitration, and both parties complied.

“No one event was the tipping point,” said Rattai. “It was the continuous ongoing pressure on the government.”
Society members, who had historically used mediation-arbitration to settle disputes, were comfortable with the development.

While a negotiated two-party collective agreement was desired, “At the time, under the circumstances, arbitration was the only way we were going to resolve this issue,” said Rattai.

“They were prepared to allow the province’s energy distribution system to self-destruct if that’s what it took. That’s how we felt,” said Rattai. And so arbitration was, in the eyes of the Society, a welcomed outcome.

While Hydro One was awarded a two-tiered pension plan, the plan changes weren’t as severe as proposed. The Society fought off other major concessions, including the employer’s attempts to decrease wages for new hires. And it succeeded in defending the 35-hour work week.

“We made them – Hydro One and Tom Parkinson – a political liability to the government,” explained Botari.

Tom Parkinson did not last long at Hydro One. He resigned in December 2006 during a corruption scandal, when he was grilled by the Auditor General for $45,000 in improper charges to his secretary’s corporate credit card.

The union sent a strong message to the Ontario government and Society employers everywhere that the union can’t be broken.

Through the strike, members learned the value of solidarity – across members and across unions. “You’ve got to protect everybody. That’s what the union is about,” said Botari.

“People look back now and say, ‘I’m proud I did the right thing, standing up for the next generation.’ Everyone that was on strike for those 105 days should be proud of what we accomplished.”

Launch event for video on discrimination



Information picket at Councillor Steve Peters' office in St. Thomas



Picket at Markham Call Centre



July 20, 2005 - Then-Premier Dalton McGuinty at Nelson Mandela School, Toronto



Picket at Liberal Party event in Woodstock



The Ontario Grid Control Centre picket line