Davie forges new 5 year agreement with its labour union for an even stronger business in the years ahead

July 22, 2016

• New 5-year collective agreement signed with Davie union (part of the CSN)
• North America’s No.1 Shipbuilder remains the most price competitive shipbuilder in Canada
• Maintains Davie’s flexibility, manufacturing productivity and competitiveness
• A united company and workforce with a shared goal, sharing in future success
• Greater opportunities for the next generation of Québec’s shipbuilders

Friday 22nd July 2016 – Levis, Québec: Davie and its labour union agreed today to a new 5-year collective agreement, which provides a stable foundation for an even stronger business in the years ahead.

Earlier this month, negotiations commenced to ratify an interim 18-month collective agreement in order to meet the conditions for participation in upcoming Federal government contract programs. Our people rejected an interim agreement in favour of a long-term solution, demonstrating their solid commitment to the business and to the community. After a short but constructive negotiation, Davie and its union reached an agreement which not only provides a solution to the immediate needs of the company, but also ensures that Canada’s largest shipbuilder can maintain its competitive edge both domestically and internationally throughout the long-term with a 5-year agreement.

Jared Newcombe, Davie’s CEO commented “Our people have spoken. They made it clear what they wanted and we listened. They want a long-term, stable future for themselves, their families, the local community and the business. And they understand that means ensuring Davie can maintain itself as the most competitive, flexible and most efficient shipbuilder in this country. That is exactly what we have agreed to today. We have a common cause and we will pursue it together as one team whereby all of Davie’s stakeholders will benefit from the future success of the company.”

Alan Bowen, Davie’s Chairman added “This is a win-win situation. We will maintain the flexibility and manufacturing productivity that has, to a large degree, made Davie so successful since we acquired the business in 2012 and our people get to share in our future success. We went in hoping for a minimum of 18 months and we came out with a full collective agreement ensuring labour stability for the next five years. I am proud of everyone involved. Davie has never been stronger in its collective resolve to win new contracts from our number one client, the government of Canada.”

Highlights of the new agreement:

• Davie’s initial proposal involved a 4.5% salary increase within a 12 month period. The salary will be increased by 5% over the next 12 months and will increase by 2% each year throughout the period of the agreement. Davie’s labour rates will remain as the most competitive of all Canadian shipbuilders ensuring it can continue to undercut others on fixed price contracts. As well as Davie’s workers sharing in the company’s future success in terms of salary, the company will continue to provide further perks outside of the collective agreement to recognize their superior workmanship.
• Night shifts will consist of four, ten-hour shifts per week instead of five, eight-hour shifts. This will continue to increase Davie’s productivity while providing our night workers with more quality family time.
• Trade flexibility is maintained as per the status quo. Davie has the most trade flexibility of any shipbuilder in Canada, meaning that performance during working hours is optimized, contributing to an overall greater efficiency.
• The ability to sub-contract work is maintained, allowing the company to compete effectively in terms of cost, technology, innovation and efficiency.
• Under the new collective agreement, the company will provide for a progressive retirement for senior employees, allowing for the recruitment, training and mentoring of Davie’s next generation of shipbuilders. Senior employees will also receive greater vacation allowances.