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Statement from Progressive Enterprises Ltd

September 6, 2006

Statement from Progressive Enterprises Ltd

We have reviewed and costed the revised settlement proposal from the executive representing members of the NDU and the EPMU.

The total financial impact of the proposal on our employment costs for distribution centre staff is 13.5 percent including a doubling of the workers’ current allowances.

The unions’ proposal therefore remains unrealistic in a marketplace where food inflation is running below four percent.

These increases are unsustainable in the supermarket industry as it would be in many others. At 13.5 percent they would threaten our business viability along with 18,500 jobs, or the cost will be directly passed on to consumers through higher food prices.

The unions’ offer does open the way for further discussion, and Progressive remains committed to negotiating a realistic wage increase for its employees based on the three existing agreements.

These agreements offer the flexibility required for the three individual sites and these have been successfully negotiated for many years.

It is management’s responsibility to do its best for its staff, its customers and its shareholders. We will agree to any framework that is good for our customers, ensures growth for the business and provides continued employment for all our 18,500 staff.


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