Viterra Inc.

Viterra Inc.

July 04, 2008 12:10 ET

Business as Usual at Viterra

REGINA, SASKATCHEWAN--(Marketwire - July 4, 2008) - Viterra Inc. (TSX:VT) has been informed by the Grain Services Union ("GSU") that members of the Regina Office and Saskatchewan Operations and Maintenance bargaining units will begin strike action on Monday, July 7, 2008.

Approximately 613 unionized employees with the Saskatchewan Country Operations and Maintenance units plan to report to work at their usual time, however, they have been advised by the Union to only work overtime on a voluntary basis.

The GSU advised the Company that unionized employees in the Regina Office plan to withdraw services. There are 194 employees in this bargaining unit.

"The GSU's action is disappointing given the significance of the Company's offer and opportunities for additional compensation through a generous annual incentive program," said Colleen Vancha, Viterra's Vice President of Investor Relations & Corporate Affairs.

Viterra's five-year offer consists of a 6% compensation payment on signing and annual increases of 6, 5, 5, and 5% beginning November 1, 2008 based on performance. In addition, Viterra will introduce an annual incentive program that has the potential to add to an employee's total compensation in the range of 5, 10 and 15% of their pay. The Company is offering common terms and conditions of employment, including market-based compensation and benefits, fairness, flexibility and long-term labour stability.

Vancha said it is business as usual at Viterra and that the Company has comprehensive contingency plans in place to maintain the high level of service customers have come to expect from Viterra.

In June, voting results from the membership of the Saskatchewan Maintenance and Operations bargaining units confirmed that almost half of Viterra's country employees that cast ballots supported the Company's offer, which is the same proposal that was overwhelmingly endorsed by unionized employees in Manitoba and Alberta recently. The offer, representing a significant commitment to competitive market-based compensation, incentive pay and labour stability, was rejected by the Regina Office bargaining unit.

Viterra Inc. 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 and services of crop inputs 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 Inc.
    Susan Cline
    Investor Relations and Corporate Affairs
    (306) 569-6948