Judy Foote, Minister of Development and Rural Renewal and MHA - Grand Bank, today expressed her pleasure with the agreement reached between union, senior management and the Board of Directors of the Marystown Shipyard, which has contributed to the increased competitiveness of the shipyard in the global marketplace.

Government announced today that Marystown Shipyard Limited has just won a contract with AMFELS Inc. of Brownsville, Texas for the fabrication of pontoon sponsons that will be used to cover existing pontoons on oil rigs to be used in the Gulf of Mexico. Government also announced today that the province will provide performance guarantees on behalf of the yard in order to proceed with the contract.

"It is truly a credit to the hard work and flexibility of the employees of the Marystown Shipyard, as well as that of senior management and the board of directors, that the shipyard is maintaining its competitiveness in the global marketplace," said the minister. "This is an excellent example of the partnerships being developed throughout rural Newfoundland and Labrador as the people of this province join forces and work together to maintain the viability of their communities and to ensure jobs remain in this province. As a result of the contract announced today, up to 500 people will be employed at the shipyard.

"Six months ago, the unionized employees, staff and management at Marystown Shipyard Limited agreed to make major productivity improvements and overhead reductions at the yard." continued the minister. "They have now come to an agreement on productivity improvement measures. In addition to that agreement, they have made a no-strike agreement with the shipyard for the AMFELS contract and have also agreed to a modified shift schedule. The supervisors at the shipyard have also voluntarily agreed to a wage rollback, which will further improve the yard's competitiveness.

"The Marystown Shipyard is already witnessing the benefits of its commitment to operating a more competitive facility," said Ms. Foote. "And by securing contracts in the global marketplace, it has shown once again that a company located in rural Newfoundland can prove to be viable competitor worldwide. I am confident that the shipyard will continue to secure more contracts in the future, doing its part to keep rural Newfoundland and Labrador alive."

Contact: Susan Laite, Director of Communications, (709) 729-4570.