Contract extension ensures employment for additional three to five months.

Hourly and salaried members of CAW local 504, on August 30, 2010, voted in favour of accepting an offer by Siemens Canada to extend its current collective bargaining agreement (CBA), set to expire April 23, 2011.  The new agreement will see the company’s Hamilton gas turbine manufacturing facility continue operations until September 30, 2011.  This will include production cessation no later than July 31, 2011 with the company extending an additional opportunity for some Siemens’ employees to prepare the facility for the closure.

The offer is enhanced from the current plant closure provision of the existing CBA.  This includes improvements in the determination of benefits, pension and severance calculation as part of the overall separation package.  In addition, the company will introduce a performance bonus linked to maintaining current and historical levels of quality, service delivery and safety metrics.

“Siemens is pleased that the members of the CAW local 504 accepted our latest proposal which, in addition to enhancements to the existing CBA, will enable the continuation of employment and respective wages, benefits and pensionable service by three to five months, while ensuring we achieve the same level of quality and service to our customers,” said Sean Walkinshaw, senior vice president of Human Resources.  “It has been our goal to keep the plant in operation as long as possible following the global announcement to transfer the gas turbine manufacturing to Charlotte, North Carolina.”

About Siemens Canada

Siemens is one of the largest and most diversified companies in the world of electronics and electrical engineering, operating in the industry, energy and healthcare sectors.  The company has approximately 5,000 employees in Canada, working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of solutions for individual requirements.   For almost 100 years in Canada, Siemens has stood for technical achievements, innovation, quality and reliability.  Sales for Siemens in Canada for fiscal 2009 (ended September 30), were $2.5 billion CAD.