NEGOTIATIONS UPDATE

On Sunday August 23^rd your Bargaining Committee met with your Employer with the assistance of Mediator Mark Atkinson. Mr. Atkinson, after meeting with both parties and hearing their positions on various matters, made it clear to us that he did not think the parties would be able to reach a settlement on many of the outstanding issues.

He was aware of the strike vote taken by Local 247 but was concerned that a labour dispute would only irreparably damage the industry and would go on for quite some time. After further discussion he recommended that both parties enter into a binding mediation process and after much debate your bargaining committee has unanimously agreed to the following:

1.                  The Union agrees that they will not exercise their right to strike

2                  In consideration of the above the Employer agrees to the following:

a) Establish an Employee Relations Committee to have Union and Management Representatives from each plant discuss ongoing collective agreement issues and application

b) Commit to further discussions regarding the Creston facility

c) NOT REDUCE THE WAGE OF ANY EXISTING EMPLOYEE

3.         The Union and the Employer agree that further bargaining will take place with respect to any remaining issues (one week scheduled for October 5-9). Any issues not resolved after these meetings will be referred to Mediator Mark Atkinson for a Final and Binding Determination. He will issue a decision no later than October 27.

Your Committee believes this is our best and only option to reach a fair settlement. There will be no Strike and we will have a Collective Agreement before the end of October with a guarantee that no current Employee will have their wages reduced.