Mr. Yves Leduc reports

VELAN HAS LOCKED OUT UNIONIZED EMPLOYEES IN ITS MONTREAL PLANTS

Gathered in a general assembly this past Friday, the unionized employees of Velan Inc. in Montreal have rejected the company's final offer. On the other hand, 90 per cent of the unionized employees in Granby have approved the same offer. Further to those results, Velan has decided to lock out its employees in its three plants in Montreal.

"We are surprised and disappointed with the results of the vote in Montreal, since the offer negotiated with the Montreal and Granby unions three days before the vote, is fair and equitable for the employees, the company and its stakeholders," said Sabine Bruckert, vice-president, human resources.

Thanks to the many years of collaboration and to the employees' historical engagement, Velan has created one of the most highly respected valve brands in the world.

When the negotiations ended, the agreement in principle provided fair and reasonable salary increases (2.5 per cent; 2.5 per cent; 2.5 per cent). The company's negotiations also aimed at developing, in collaboration with the union, the best ways to create sustainable, up-to-date and agile manufacturing operations in Quebec, in line with Velan's operational excellence strategy. The company wants to foster cross-training of its employees and the creation of production cells to optimize its operations.

While the company's negotiations were under way, the union started to exert pressure tactics such as work slowdowns, extended break periods, disruptions that posed health and safety concerns, and even in some cases permitting on-the-job behaviour that went far beyond reasonable limits. Furthermore, damages to the company's assets and equipment were noticed during this period. Obviously, such behaviour cannot be tolerated, and keeping the company's plants operating under these conditions also creates unacceptable risks for the employees and the company. It is for these reasons that Velan has decided to lock out unionized employees in its Montreal plants.

"Over the next few days, Velan will focus on its customers and will minimize for them the impact of this decision on their operations. We will also devote our full attention on our employees and our operations. It is in the interest of all parties involved that questions related to operational excellence be resolved in an appropriate and professional manner," said Yves Leduc, president of Velan.