Dresser-Rand Group Inc. on November 24 confirmed that it has notified the IUE-CWA Local 313 union representatives for the company's Painted Post facility in
"While the company's clear desire is to reach an agreement that resolves the current contract dispute, having the employees return to work under the expired contract will not further that goal. This dispute needs to be settled and resolved at the bargaining table, not on the plant floor. The return of the employees under the old contract does nothing to resolve the dispute," said Elizabeth Powers, vice president and chief administrative officer of Dresser-Rand. "The company maintains its commitment to achieving a new, contemporary labor agreement at its Painted Post facility to meet its long term objectives. The union and the company have agreed to meet on November 26 and continue negotiations on consecutive days thereafter. We hope for a speedy resolution to this matter."
As to the current status of Painted Post's contingency plan to provide uninterrupted service to its clients, the company currently has approximately 130 temporary replacement workers and has hired 94 permanent replacement workers. It has also subcontracted approximately 35 percent of its labor hours. Productivity continues to improve and product quality is good. The facility was recently recertified ISO 9001 and 14001 by Lloyds Registry despite the strike.
The company currently does not believe that this recent development warrants any change in its earnings guidance for 2007 and 2008 disclosed at its October 31, 2007 conference call which followed the report of the company's third-quarter 2007 results.
Dresser-Rand is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical and process industries. The company operates manufacturing facilities in the