NEW FLYER ANNOUNCES WINNIPEG UNION RATIFICATION OF NEW COLLECTIVE AGREEMENT
Winnipeg, Manitoba, Canada, March 31, 2012; New Flyer Industries Inc. (TSX:NFI, TSX:NFI.UN) (New Flyer or the Company), the leading manufacturer of heavy-duty transit vehicles in Canada and the United States, is pleased to announce that the members of the Canadian Auto Workers (CAW) main collective bargaining unit at the Winnipeg facility have today ratified a new collective bargaining agreement. This new three-year contract will commence on April 1, 2012 and will expire on March 31, 2015, and replaces the previous three-year agreement that expires today.
This new collective agreement is representative of the strong and continued partnership between New Flyer and the CAW. I would like to thank the CAW, their membership and the New Flyer team for a negotiation that was done professionally, constructively and efficiently by both parties, said Paul Soubry, New Flyers President and Chief Executive Officer.
Under the terms of the new collective bargaining agreement there is no wage increase in year one of the agreement, however, each bargaining unit employee will receive a C$800 signing bonus. The agreement provides annual increases of 2.0% and 2.25% in years two and three of the agreement, respectively. The agreement also reduces entry level wage scales and freezes them for new employees during the term of the agreement. The parties have agreed to a 2.5% increase in pension benefits per year of credited service, effective in year three of the agreement, in addition to certain other benefit enhancements.
The Winnipeg plants unionized workforce represents approximately 32 percent of New Flyers total workforce in Canada and the United States.
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in the United States and Canada. The Companys three facilities -- in Winnipeg, MB, St. Cloud, MN and Crookston, MN - are all ISO 9001, ISO 14001 and OHSAS 18001 certified. With a skilled workforce of over 2,000 employees, New Flyer is a technology leader, offering the broadest product line in the industry, including drive systems powered by clean diesel, LNG, CNG and electric trolley as well as energy-efficient diesel-electric hybrid vehicles. All products are supported with an industry-leading, comprehensive parts and service network. The Companys common shares and income deposit securities are traded on the Toronto Stock Exchange under the symbols NFI and NFI.UN, respectively. Further information is available on New Flyers web site at www.newflyer.com.
This press release may contain forward-looking statements relating to expected future events and financial and operating results of New Flyer and New Flyer Industries Canada ULC (NFI ULC) that involve risks and uncertainties. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including the risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, New Flyer and NFI ULC disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
For further information, please contact:
New Flyer Industries Inc.
Chief Financial Officer