Statement from local auto dealers

JOINT NEWS RELEASE

PROUSE PONTIAC BUICK GMC LTD

HIGHLAND FORD SALES LTD

SUPERIOR DODGE CHRYSLER LTD

************************* SAULT STE. MARIE - (14 March 2010) - Talks broke down Friday March 12 between Prouse Pontiac Buick GMC Ltd., Highland Ford Sales Ltd. and Superior Dodge Chrysler Ltd., and the International Association of Machinists and Aerospace Workers and its Automotive Lodge 2332, when the union walked away from the table.

The union is quoted in the Sault Star on March 12 as saying the companies are "basically still trying to take away from our lowest-paid people and we're not prepared to go there at this time."

The companies are concerned about this statement, especially given the fact that they tabled what they believed to be a very generous offer with absolutely no concessions.

The companies recognized the need for a new entry-level position wage rate to remain competitive.

Even with the minimum wage increase on April 1, 2010, to $10.25 per hour, the companies offered .50 cents more per hour than this; a 2.8 percent increase the second year, and a 3.4 percent increase in the third year including pension contributions, for this category of future employees.

The companies cannot believe how such an offer could be seen as a "take away" by the union's bargaining committee.

The companies are doing their best to offer a fair and reasonable wage and benefit package despite the current economic conditions, especially in our own community with the recent announcement of the loss of over 300 jobs at St. Marys Paper.

************************* Earlier SooToday.com coverage of this story

Union statement on auto dealership lockout Breakdown in local auto dealer talks