Listed: TSX, NYSE
SASKATOON, SK, Aug. 7 /CNW/ - Potash Corporation of Saskatchewan Inc.
(PotashCorp) announced that unionized employees at its Allan Division, Cory
Division and Patience Lake Division potash operations commenced strike action,
effective 5:30 p.m. (CST) today. The 487 striking employees are members of
United Steelworkers' (USW) Local 7689 at Allan, USW Local 7458 at Cory and USW
Local 189 at Patience Lake and are responsible for underground mining
operations as well as milling and shipping activities on the surface.
The strike action followed four days of mediation that was unable to
resolve key contract issues, primarily centered on profit-sharing demands by
the union. To date, the union has refused to present the company's final offer
to its membership for a vote.
"While we are disappointed by the decision of union leadership to strike,
we remain committed to operating with a long-term view," said PotashCorp
President and Chief Executive Officer Bill Doyle. "We will manage our assets
responsibly and protect our future cost structure so that we remain
competitive within the global arena. We have offered a top-end contract in the
Saskatchewan market that will make our employees the highest-paid miners in
the North American potash industry. We believe our offer rewards our workers'
important contributions, while protecting the future of our company for all
stakeholders, including our employees."
The bargaining units representing unionized employees at each facility
provided strike notice to the company on July 23, 2008, to which PotashCorp
responded by immediately providing lockout notice. Provision of these notices
enabled both sides to initiate strike action or lockout 48 hours after notices
were served. Previous contracts expired April 30, 2008. PotashCorp has
maintained continuous communication with the USW and the lines of
communication remain open.
Please see www.potashcorp.com/updates, for additional information
regarding the labor situation.
Potash Corporation of Saskatchewan Inc. is the world's largest fertilizer
enterprise producing the three primary plant nutrients and a leading supplier
to three distinct market categories: agriculture, with the largest capacity in
the world in potash, second largest in nitrogen and third largest in
phosphate; animal nutrition, with the world's largest capacity in phosphate
feed ingredients; and industrial chemicals, as the largest global producer of
industrial nitrogen products and the world's largest capacity for production
of purified industrial phosphoric acid.
This release contains forward-looking statements. These statements are
based on certain factors and assumptions including foreign exchange rates,
expected growth, results of operations, performance, business prospects and
opportunities and effective income tax rates. While the company considers
these factors and assumptions to be reasonable based on information currently
available, they may prove to be incorrect. Several factors could cause actual
results to differ materially from those in the forward-looking statements,
including, but not limited to: fluctuations in supply and demand in
fertilizer, sulfur, transportation and petrochemical markets; changes in
competitive pressures, including pricing pressures; timing and amount of
capital expenditures; risks associated with natural gas and other hedging
activities; changes in capital markets and corresponding effects on the
company's investments; changes in currency and exchange rates; unexpected
geological or environmental conditions, including water inflow; strikes and
other forms of work stoppage or slowdowns including work stoppages at our
Allan, Cory and Patience Lake facilities; changes in and the effects of,
government policy and regulations; and earnings, exchange rates and the
decisions of taxing authorities, all of which could affect our effective tax
rates. Additional risks and uncertainties can be found in our Form 10-K for
the fiscal year ended December 31, 2007 under captions "Forward-Looking
Statements" and "Item 1A - Risk Factors" and in our filings with the US
Securities and Exchange Commission and Canadian provincial securities
commissions. Forward-looking statements are given only as at the date of this
presentation and the company disclaims any obligation to update or revise the
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by law.
For further information:
For further information: Investors: Denita Stann, Director, Investor
Relations, Phone: (847) 849-4277, Email: firstname.lastname@example.org; Media: Bill
Johnson, Director, Public Relations, Phone: (306) 933-8849, Email:
email@example.com; Web Site: www.potashcorp.com