A sudden cutoff of health insurance benefits has intensified tensions between Okonite and its workforce in Santa Maria, where more than 160 union employees remain on strike after rejecting a contract they say failed to address rising living costs and basic protections.
Workers here manufacture the insulated cables that help power hospitals, military bases, transit systems, and major utilities across the country. But for many, the fight is no longer just about what they make hourly.
“On Wednesday, I had a doctor's appointment. I have pain in my shoulders, and when I went to my doctor's appointment, I started checking in," said Luis Castillo, who had a medical appointment just days after the coverage ended. “They told me that my insurance was inactive. The day before it was active because I went to get X-rays and well, here they told me that they had cut off the insurance benefits as of Monday."
He said he took the job because the company’s work aligned with his experience and offered what he believed would be stability.
“It’s one of the best companies in the area. They give a lot of support. But after six months, they began negotiations and most of the long-time workers aren’t happy. There should be more benefits, more pay,” he said.
According to Cliff Reynolds, who represents the workers through Teamsters Local 986, the union brought the company’s final offer to its members on May 19. It was rejected by a majority of union workers.
“The principal issue is wages. We’re paid less than workers at Okonite’s Richmond, Kentucky plant and that’s in a region with a much lower cost of living. Here on the Central Coast, the cost of living is 24% higher. Our members are dealing with rising rent, food prices, and trying to raise families,” he said.
Reynolds said that within hours of the vote, the company took action that shocked workers and union leaders alike — it terminated their health coverage.
“This company is taking a very hard line. Members received in the mail packets and there’s a box checked on the form that they sent [to] each member that says their employment has been terminated,” Reynolds said.
The next day, workers began receiving COBRA notices, a standard, legally required form that informs employees they have the option to continue their health coverage, but at full cost. However, union workers were caught off guard. On the cover sheet, many workers saw the words: “Termination of Employment.”
“Those letters had a box checked: termination of employment. That’s not how you treat workers just standing up for better wages,” Reynolds said.
Union members said their final paychecks still included deductions for insurance premiums, despite the fact that the company had already canceled their coverage.
Raymond Lopez, who has worked at Okonite for nearly nine years, said the sudden loss of coverage put his wife’s health at risk.
“My wife needs diabetes medicine. One of her prescriptions is over a thousand bucks without insurance. That’s one thing that affected us. We knew the benefits might end after the month, but not like this. Not early, not suddenly,” Lopez said.
He added, “They have a good product, and we make it. Hopefully, both sides can get together. We don’t want to hurt the company we just want to be compensated fairly.”
One of the oldest workers on the picket line is Armando Nares, who has worked at the plant for more than 52 years. He said he’s showing up every day to support the younger generation.
“I’ve worked here for over 50 years, and I’ve given this company a lot. But I’m thinking about the people who are just starting. They should have a better future for themselves and their families,” he said.
He expressed pride in the solidarity among the workers.
“We’re all showing up in shifts, 25 people at a time, two hours each, from 8 a.m. to 6 p.m. We’re cooperating as a union. The response has been strong. We’re united,” he said.
The union has filed an unfair labor practice charge with the National Labor Relations Board, according to Reynolds, a move that could change the entire nature of the dispute.
“That will actually protect our members. If this is designated as an unfair labor practice strike, the company will be required to offer these workers their jobs back when the strike ends. It gives them legal protection from permanent replacement,” Reynolds said.
Okonite’s website says 186 people are employed at the Santa Maria facility. According to Reynolds, about 160 of those are union members and they’re the ones currently feeling the fallout from the rejected contract, the sudden insurance loss, and the termination notices.
KSBY reached out to Okonite for a response and was referred to the company’s negotiator. KSBY still has not received a response.
