The action is the first of a series of planned one-day stoppages at the Lostock factory after failure to agree a deal in the July annual review.
The pay row highlights growing expectations among the workforce for better wage rises as the recovery takes hold.
Severfield’s Sherburn works recently lost welders to rival firms including William Hares, currently working on the Olympic Stadium contract, after they were enticed away with better terms.
The rest of Severfield’s workforce have agreed the 2014/15 pay review, but the former Watson Structures factory in Bolton is holding out for a better deal.
Around two thirds of the 140 strong workforce at Lostock are believed to be members of the GMB union, which is trying to negotiate a deal.
Sean Buckley, regional organiser for the North West Region of the GMB, said: “The workforce has suffered a series of terms and conditions losses to help the business over the recent tough years.
“The workforce saw the improvement in directors bonuses and remuneration packages in the annual report and want a fair increase.”
Severfield has tabled a two-year deal to reduce the working week from 48 to 46 hours with no loss of pay and a 0.5% wage increase.
Buckley said: “The members are asking for 3% in one year, after losing their £50 overtime bonus.”
He added that no other meetings were planned and the union expected to press ahead with further action next week.
A spokeswoman for Britain’s biggest steelwork contractor said: “Severfield remains hopeful of reaching an agreement with employees at the Lostock site.”