Viterra Inc.

Viterra Inc.
Saskatchewan Wheat Pool Inc.

January 18, 2008 12:27 ET

Viterra's Solution Accepted by GSU Members

REGINA, SASKATCHEWAN--(Marketwire - Jan. 18, 2008) - Viterra (TSX:VT) is pleased to announce that its solution to outstanding funding issues with the SWP/GSU Pension Plan has been approved by Grain Services Union ("GSU") members.

Secret ballot votes were conducted by the GSU throughout Saskatchewan from January 7-10 and January 14-17. Members were asked to vote on the settlement agreement proposed by the Company last November. The agreement will see the Company assume full administration of the Plan and take full responsibility for funding the solvency deficiency payments.

President and CEO Mayo Schmidt said, "Respect for employees is at the heart of our new company's guiding principles. Our comprehensive solution illustrates our commitment to employees, who are the cornerstone of our success. With this agreement in place we can continue building on our position as Canada's agri-business leader, while looking forward to creating enhanced opportunities for our people."

Details of the agreement include:

- Viterra will move all active employees in the SWP-GSU Plan to a defined contribution plan no later than July 1, 2008.

- Viterra and the GSU will amend the Plan with Viterra taking full responsibility to fund all pension benefits for Plan members, with no change to the contribution rate of active Plan members.

- Viterra will contribute $13 million of solvency deficiency payments and make any future quarterly deficiency payments to the Plan, as required.

- Viterra will assume the sole right to manage the Plan into the future and the risks associated with it.

The Plan, which covers approximately 15% of employees at Viterra, will move forward pending approval from the Office of the Superintendent of Financial Institutions of Canada ("OSFI"). The SWP/GSU Plan is registered under the federal Pension Benefits Standards Act (PBSA) and is regulated by OSFI.

Saskatchewan Wheat Pool Inc., doing business as Viterra, is Canada's leading agri-business, with extensive operations and distribution capabilities across Western Canada, and with operations in the United States and Japan. The new company is diversified into sales of crop input services and equipment, grain handling and marketing, livestock feed, agri-food processing and financial products. These operations are complemented by value-added businesses and strategic alliances, which allow Viterra to leverage its pivotal position between Prairie farmers and destination customers. The Company's common shares are listed on the Toronto Stock Exchange under the symbol VT.

Contact Information

  • Viterra
    Peter Flengeris
    Investor Relations and Corporate Affairs
    (306) 569-4810