Tree Island and Union Local Sign Long-Term Collective Agreement
VANCOUVER, BRITISH COLUMBIA–(EMWNews – July 21, 2008) – Tree Island Wire Income Fund (the “Fund”) (TSX:TIL.UN) today announced that its operating company, Tree Island Industries Ltd. and Teamster Local 213 have successfully concluded a new multi-year collective agreement. The agreement, which covers 295 hourly employees at Tree Island’s Richmond, BC manufacturing facility, was concluded after 77% of the unionized employees voted for ratification this past weekend. The new collective agreement is retroactive to July 1, 2008 and has a four-year term to June 30, 2012.
“We are pleased to have reached a balanced, long-term agreement with the Teamsters,” said Daniel McAtee, President and CEO of Tree Island Industries and a Trustee of the Fund. “This now gives us added stability as we continue to focus on our growth and profit enhancement strategies.”
The Fund holds a 100% ownership interest in Tree Island Industries Ltd., one of North America’s largest producers of wire and fabricated wire products. The Fund was launched on November 12, 2002 with the completion of an initial public offering. There are currently 21,960,447 units of the Fund outstanding. The Fund’s performance depends entirely on the performance of Tree Island.
Tree Island Profile
Headquartered in Richmond, British Columbia, Tree Island Industries produces wire products for a diverse range of construction, agricultural, manufacturing and industrial applications. Its products include bright wire, stainless steel wire and galvanized wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products, engineered structural mesh, fencing and other fabricated wire products. The company markets these products under the Tree Island, TI Imports and HK Universe brand names. Tree Island also owns and operates a Hong Kong-based trading company that provides internationally sourced products to Tree Island and its customers worldwide.
This press release includes forward-looking information with respect to the Fund and the company, including their business, operations and strategies, as well as financial performance and conditions. The use of forward-looking words such as, “may”, “will”, “expect” or similar variations generally identify such statements. Any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. These statements speak only to the conditions in existence as of the date of this press release, and the Fund maintains no obligation to update such statements. Although management believes that expectations reflected in forward-looking statements are reasonable, such statements involve risks and uncertainties including the risks and uncertainties discussed in the Fund’s annual information form dated March 26, 2008 and management’s discussion and analysis for the fiscal year ended December 31, 2007.
Forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Such risks and uncertainties include, but are not limited to, risks associated with operations such as competition, dependence on the construction industry, market conditions for products, supplies of and costs for raw materials, dependence on key personnel, labour relations, regulatory matters, environmental risks, the successful execution of acquisition and integration strategies, foreign exchange fluctuations, the effect of leverage and restrictive covenants in financing arrangements, product liability, the ability to obtain insurance, energy cost increases, the ability to fund necessary future capital investments, changes in tax legislation, other legislation and governmental regulation, changes in accounting policies and practices, operations in a foreign country, and other risks and uncertainties set forth in publicly filed materials.
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