NLIS 7
April 7, 2000
(Industry, Trade and Technology)

Government pleased with changes to Bull Arm labour agreement

Premier Tobin said that he is pleased with the announcement made today that PCL Constructors Limited and the Petroleum Development Association (PDA) will be making changes to the labour agreement for Bull Arm, with respect to the hook-up of the floating production storage and offloading (FPSO) vessel for the Terra Nova project.

The changes for the next phase were done voluntarily by PCL and the PDA and include: a 10 per cent increase in the basic wage rates for the project; an increase in the overtime rate from time and one half to double time; and a new and innovative attendance bonus for employees who work all scheduled time in any four week period, based on 6-10 hour days per week. The attendance bonus amounts to five per cent of gross pay.

"This announcement shows a high degree of cooperation between all parties, and is a very positive and pro-active step for the Bull Arm facility," said Premier Tobin. "Bull Arm is a very competitive site, with a highly skilled workforce, and these changes should bode well for our province�s reputation and the future of our fabrication industry."

PCL is constructing two topsides modules, a flare tower, the generator module and other miscellaneous deck assemblies for the Terra Nova project. The FPSO hull is currently en route from Korea, and is expected to arrive in Bull Arm in late May. It will undergo seven months of hook-up and commissioning work prior to its journey offshore to begin producing oil from the Terra Nova oil field.

Industry, Trade and Technology Minister Sandra Kelly noted that this agreement is an important step in putting the next phase of the Terra Nova project in place.

"We are about to reach the next major milestone of the Terra Nova project, so it is very encouraging to see this level of commitment from everyone involved," said Minister Kelly. "The arrival of the FPSO at Bull Arm will be a very exciting day for our province, and I am pleased to see everyone working together to ensure that this project is a success."

Media contact: Heidi Bonnell, Communications, (709) 729-3564.

2000 04 07                                                                             3:15 p.m.