New Flyer Announces St. Cloud Union Ratification of New Collective Agreement
Winnipeg, Manitoba, Canada, May 31, 2013; New Flyer Industries Inc. (TSX:NFI; TSX:NFI.DB.U) (“New Flyer” or the “Company”), the leading manufacturer of heavy-duty transit vehicles in the United States and Canada, is pleased to announce that the members of the Communications Workers of America (“CWA”) collective bargaining unit at the St. Cloud facility have ratified a new collective bargaining agreement. This new four-year contract will commence retroactive to April 1, 2013 and will expire on March 31, 2017, and replaces the previous agreement that expires on March 31, 2013.
“This new collective agreement is representative of the strong and continued partnership between New Flyer and the CWA. I would like to thank the CWA, their membership and the New Flyer team for a negotiation that was done professionally, constructively, efficiently and delivered a fair agreement for both parties,” said Paul Soubry, New Flyer’s President and Chief Executive Officer.
The new agreement provides annual wage increases of 2.5% in year one, 2.5% in year two, 2% in year three and 2.25% in year four. The agreement also freezes entry level wage scales and increases time progression to full rate for new employees during the term of the agreement. The parties have agreed to an increase in employee medical cost share contributions.
The St. Cloud’s unionized workforce represents approximately 19 percent of New Flyer’s total workforce in the United States and Canada.
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in the United States and Canada. The Company’s three manufacturing facilities – in Winnipeg, MB; St. Cloud, MN and Crookston, MN – are all ISO 9001, ISO 14001 and OHSAS 18001 certified. The Company currently operates a parts fabrication facility in Elkhart, IN and four parts distribution centers in Winnipeg, MB; Brampton, ON; Erlanger, KY and Fresno, CA. The Company also operates a service center in Arnprior, ON.
With a skilled workforce of over 2,200 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. New Flyer has delivered over 32,000 heavy-duty buses in the United States and Canada. All products are supported with an industry-leading, comprehensive parts and service network. Further information is available on New Flyer’s web site at www.www.newflyer.com.
The common shares and convertible unsecured subordinated debentures of New Flyer are traded on the Toronto Stock Exchange under the symbols NFI and NFI.DB.U, respectively.
This press release may contain forward-looking statements relating to expected future events and financial and operating results of the Company 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 market and general economic conditions and the other 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, the Company disclaims 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.
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