Create a free Manufacturing.net account to continue

Workers Say No To Wage, Benefit Cuts

Unionized employees of Scanwood Canada Ltd., an insolvent Nova Scotia furniture maker, have refused the company's request for benefit and wage concessions.

HALIFAX -- Unionized employees of Scanwood Canada Ltd., an insolvent Nova Scotia furniture maker, have refused the company's request for benefit and wage concessions.

About 136 members of the Canadian Auto Workers union turned out to vote today saying they felt they had nothing left to give the Dartmouth company.

As of Feb. 4 Scanwood owed creditors millions of dollars.

It has been operating under court protection under the Companies' Creditors Arrangement Act.

The company has a contract to produce 900,000 chests of drawers for Ikea and has until April 18 to prepare a financial proposal for creditors so it can continue to operate.

Scanwood director Bo Thorn said last week that the company is pursuing all possible options in its efforts to return to viability.
More in Operations