Update: Machinists Strike Success At Hayward Manufacturer

Update: Shortly after publication, the Hayward Herald was made aware that the IAMAW Local 1414 workers at Morgan Technical Ceramics had unanimously ratified their final contract. We congratulate the workers on their victory and wish them well.

On Friday July 31st, workers in the International Association of Machinists and Aerospace Workers (IAMAW) Local 1414 held a rally at Morgan Technical Ceramics in South Hayward. The workers, accompanied by local elected officials and representatives from the Alameda County Labor Council, were protesting the final contract put forward by Morgan Technical Ceramics following the announced closure of the facility. They had been on strike since July 27th.

The facility, which employs 71 workers, will close in 2027 following an announcement four months ago. The workers, who use ceramics brazing to make technical components used by aerospace, biomedical, and computer hardware companies, are long-time employees being denied adequate severance packages. After multiple rounds of negotiations, the union authorized a strike to force their company to bargain in good faith.

Shareholder Value Over Hayward Workers

Morgan Advanced Materials, the parent company, is a multi-national corporation with over 75 locations across the globe and is headquartered in Windsor, United Kingdom. It employs over 8,000 people across multiple manufacturing sectors, according to their own website, and had a 2025 profit of over $133,000,000—a profit margin of almost 10%. Despite this, they appear to be making cuts in an effort to generate more profits for shareholders.

"Demand in our end-markets has now broadly stabilised [sic] and... revenue has remained stable since the second half of 2024," according to a statement made by CEO Damien Caby in a report. Despite this, Caby appears to be focused on cutting costs in an effort to boost profits to shareholders.

According to the report, Caby is leading a "business simplification program" that involves closing down factories and selling off certain parts of their business in order to "create value for our shareholders." It will also save the company around $36,000,000 at the cost of workers around the world. The company has already closed 25 of their sites since 2016, with plans for more on the way.

According to union leadership, shareholders have rewarded Caby's actions with a $1,400,000 compensation package. The Hayward Herald reached out to Morgan Advanced Materials with a request for comment and to confirm this figure, but did not receive an answer in time for publication.

Cutting Important Industry For The Shareholders

While the general trend is toward consolidating facilities to save money, the Technical Ceramics division is growing within the company. "Our Technical Ceramics division is building on its leading position in ceramic cores for engines blades by investing in capacity to meet the increase in aircraft deliveries and progressive ramp up of new generation engines with higher design complexity," according to the 2025 report. The workers on strike are the ones whose skills make those components possible, and that's not lost on union members.

Don Crosotto, a district director for the Machinist's Union, said that the Hayward factory produces a particular ceramic powder that isn't made anywhere else. And while Morgan has tried to replicate the process in other countries, they have thus far been unable to do so. Despite the technical expertise of the Hayward workers and the importance of Technical Ceramics to their business, Caby's pursuit of shareholder value may lose an valuable part of their ceramics division.

Crosotto said that the factory is still in full production, despite the looming closure, and that last year the workers earned record bonuses due to their high production. "This is a profitable factory," he said.

Dedicated Workers Left Behind

Though they've come to terms with the factory closing, Local 1414 is working hard to make sure that their members receive a soft landing after the closure. Crosotto said that the union negotiated with Morgan for three months and were only offered 8 weeks of severance pay. With the majority of workers having been at the factory for 20 or more years, that meager package was unacceptable.

Morgan eventually came back with up to 25 weeks of severance, but only if workers give up wage increases for the remaining 18 months the factory is open. "We are here to fight for fair severance pay and wages for the next 18 months until the day they close," said Hieu Dinh, who has been with the company for 27 years. "Everyday we work hard to make this company grow and make money for them, so we need something in return.”

Morgan appears completely uninterested in keeping these skilled workers. According to Crosotto, the previous contract required the company to allow workers to relocate to any factory in Northern California. However, when negotiating the severance contract, Morgan shifted their stance to limit the relocation area to less than 100 miles—Morgan's nearest factory in Auburn is around 120 miles away.

“I’ve given a lot of my life to the company," said Oscar Rivas, an employee of 42 years. "I have been working 4 hours overtime every day, Saturdays and even Sundays, so the company can deliver products to their customers and make profits. Now the company is closing. What we want is a fair last contract that reflects the respect that every member here earned through our hard work and making the company record profits.”

Local Support For Local Labor

Multiple local officials spoke at the rally in support of the striking workers. Mayor of Hayward Mark Salinas pointed out the strong ties that organized labor has to the city. "Hayward is very proud to be a strong union town," he said. "Any time there is a problem at a company, it's not just a worker issue, it's a city issue. [It’s] absolutely important that a company pay its workers what they’re owed. The city is behind you."

Council member George Syrop spoke directly to Morgan CEO Damien Caby. "This organization was built by these workers and you owe it to them to come to the table," he said. "These are the workers who made that $100 million in profit possible. You better sit down with them—it’s their money!”

Support also came from Assembly member Liz Ortega's office. "They built up your company and it would be nothing without your workers," said Veronica Lopez, representing Assemblymember Ortega. "The State Legislature has your back."

Keith Brown, Executive Secretary-Treasurer of Alameda Labor Council, promised support from other labor unions throughout Alameda County. "We are standing shoulder to shoulder with the dedicated workers of 1414," he said. He criticized Morgan for the large bonus given to Caby while failing to provide a "dignified severance package" to Hayward workers."They refuse to treat dedicated, valued workers in Alameda County with respect."

Talks between Local 1414 negotiators and Morgan Advanced Ceramics leadership were expected to resume yesterday morning (Monday). The union continues to push the company to offer their workers a fair agreement in line with their years of dedicated service. Until an agreement is reached, the workers will stay on the picket line and fight for what they deserve.

To join members of Local 1414 on the picket line or offer your support, head to Morgan Technical Ceramics on 2425 Whipple Rd in Hayward.