Meat Industry INSIGHTS Newsletter

971028 Maple Leaf Meats Calls For U.S.-Style Labor Costs

October 7, 1997

TORONTO - Maple Leaf Meats, which is in a labor dispute with unionized workers at two of its Canadian meat processing plants, said on Tuesday that it would push for U.S.-style labor costs at its Canadian facilities.

Maple Leaf, a unit of Maple Leaf Foods Inc (MFI.TO), shut down its Hamilton, Ontario bacon and wiener plant and locked out about 280 members of the United Food and Commercial Workers local 617P early on Saturday after failing to reach an agreement over wage increases and pension benefits.

The lockout more than doubled the number of workers on strike against the company. About 200 unionized workers at the Maple Leaf bacon processing plant in North Battleford, Saskatchewan, have been on strike since August 31.

"A number of red meat processing plants in Canada, specifically in beef, already have North American competitive labor costs. They restructured their industry to be cost competitive many years ago. That is all we are looking for," Maple Leaf Executive Vice-President Patrick Jones said.

Maple Leaf officials said the company's recent offer of an eight percent wage increase over three years was generous.

The base pay rate is currently $10.90 per hour at the Hamilton plant and $9.88 an hour in North Battleford.

Union officials were unavailable for comment but said in a statement after Saturday's lockout that the benefits packages at the Hamilton and North Battleford plants were substandard.

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