Sandvik Materials Technology Canada

Sandvik Materials Technology Canada

July 14, 2011 18:11 ET

Strike Action Taken at Sandvik Materials Technology Canada by CAW Local 2228 Workers

ARNPRIOR, ONTARIO--(Marketwire - July 14, 2011) - Sandvik Materials Technology Canada, Management Negotiating Committee

This release is being issued to clarify information being presented to the employees and the public by the CAW Union, Local 2228.

As of Wednesday, July 13th at 12:01am, Sandvik Materials Technology Canada's unionized workers officially walked off the job under the direction of their bargaining committee.

No proposal was ever put forth which would have affected the normal retirement benefits of the employees.

Faced with a five million dollar increase in pension funding requirements resulting from Pension legislation, an initial proposal was put forward affecting the early retirement provisions of the plan, in order to reduce these future funding requirements. This was done to allow the Company greater flexibility in meeting more immediate monetary concerns such as the Cost of Living Allowance.

During initial discussions, the Company withdrew the proposal affecting the early retirement provisions of the plan. At that point, the Company continued to offer a reduced, fixed cost of living allowance resulting in an average increase to pay of 1% year one, rolled into wages July 1st year two resulting in a further 1% pay increase.

In addition to the above provisions, the Company also had agreed to a number of other monetary provisions and revisions of key language in the Collective Agreement.

The Union did not present the Company's final offer to their membership, instead calling for immediate strike action. In subsequent live interviews and employee statements released through the press following strike action, it is clear that information regarding both the nature of the Company's initial proposals and the content of the final proposal has been incorrectly presented to the Union membership and the public.

Michael Hall, General Manager of Sandvik Materials Technology, wishes to confirm Management's commitment to resolution of the labour dispute in a manner which supports employee and business interests and, additionally, minimizes the damage that such actions have on families, customers, Sandvik and the local community.

SMTC is a stainless steel tube manufacturing facility in Arnprior, Ontario.

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