Workers and The Okonite Company agree to new five-year labor contract ending weeks-long strike
SANTA MARIA, Calif. – Workers at The Okonite Company's Santa Maria plant have reached an agreement on a five-year collective bargaining agreement with management at the nation's oldest independent wire and cable manufacturer after going on strike in May of this year.
The Santa Maria plant is a 50-acre site that has 186 total employees of which 160 workers are covered under a collective bargaining agreement that expired on May 19.
In response, workers at the Santa Maria plant went on strike the following day and their legal representatives and the International Brotherhood of Teamsters Local 986 filed an Unfair Labor Practice charge against The Okonite Company on May 21, 2025.
As part of the agreement this week, the Unfair Labor Practice charge has been withdrawn shared Teamsters Regional Leader Christian Castro with Your News Channel.
The Okonite Company unilaterally cancelled health insurance coverage for all 160 unionized workers at the plant for the remainder of May despite insurance premiums still being taken out of workers paychecks for the last two weeks of the month alleged a May 23 letter from attorneys representing Teamsters Local 986 and issued to the cable and wire manufacturer as the strike progressed.
According to Castro, the company has agreed to take care of any medical bills for services received by unionized workers who did not receive those benefits under an alternate medical plan from May 10 through their return to work on June 11.
In response to Your News Channel's coverage of the agreement and claims made in the May 23 letter above, The Okonite Company stated in an email on June 19, "Okonite did not cancel insurance that had been paid for. Any wage deductions for insurance premiums represented payment for coverage already provided up until the employee’s last day of work before walking off the job. Any statement by the union otherwise is simply in error. In California, striking workers are typically entitled to subsidized health insurance through a state program, so it’s not unusual for employer-based insurance coverage to terminate if employees go on strike. It is our understanding that our employees did in fact obtain coverage through the state of California while out. We understand that there may have been a small handful of employees who were not able to obtain state coverage, and we are in discussion with the union to identify those individuals and see what if anything can be done to help them."
Your News Channel reached to The Okonite Company for comment and the following statement was provided:
"We are pleased that our valued employees are back to work and continuing to produce the best cable products in the industry. Okonite’s relationship with its employees has always been special and will continue to be so. Our new contract continues Okonite’s long-standing position as a premier employer with a very competitive wage package. The total compensation our employees receive includes paid vacation and sick time, excellent medical and dental care, a defined-benefit pension, beneficial stock ownership, and opportunities for growth and advancement. We are excited to move forward with our team at full strength, so we can continue offering the quality and service our customers have expected since 1878." -Brett D. Halloran, Vice President of Employee Relations for The Okonite Company
