By Cathy Dobson
From www.theobserver.ca The Observer
Twenty of Sarnia’s trade and union groups have overwhelmingly endorsed a new project agreement to entice a new plant to the vacant Lanxess bioindustrial park in Chemical Valley.
“It’s very important because it demonstrates that Lanxess is working diligently to develop their property,” said Ray Curran of the Sarnia Construction Association. “It’s very good news.”
His association was the agent for Lanxess during negotiations with local contractors and 14 unions, which voted to support the agreement one week ago.
Lanxess was anxious to have a project agreement in place while it talks to investors about its 200-acre park on Vidal Street South, Curran said.
No specific projects have been named. However, the park’s sustainability director recently confirmed Lanxess is in discussions with U.S. biofuels company Gevo Inc. and is urging the company to build a large isobutanol plant in Sarnia.
The project agreement is considered a critical tool in attracting new industry to Sarnia, because most U.S. projects have similar agreements, said Curran.
The Sarnia agreement states the region’s 5,000 unionized workers and unionized contractors will work for a reduced standard wage for the duration of any project that locates on the Lanxess site. It also has a no-strike, no-lockout provision and standardizes hours of work.
“It’s a very positive step that gives us hope that (the property) will develop into something,” said Curran. “This agreement allows an owner that invests in our area to know exactly what his costs are going to be, and he knows he’s going to be able to finish his project without any sort of strike or lockout.
“It’s a big selling point.”
Sarnia unions and labour groups have endorsed project agreements in the past that resulted in construction of new plants. The most recent examples are the two natural gas-fired power plants built in St. Clair Township two years ago.
Greenfield Energy on Bickford Line was a $700-million joint venture, followed by a second, $479-million power plant on Petrolia Line.
“It’s nice to see Lanxess is trying to move on developing their site because we could use some capital projects,” Curran said. “There’s nothing major on the horizon right now.”
Some $3 billion worth of work has been done under similar agreements in Sarnia over the past 15 years, Curran added.
Sarnia Mayor Mike Bradley called the agreement a ‘win-win,’ noting these kinds of agreements are limited to projects worth a minimum of $50 million.
“There’s ongoing interest in Chemical Valley sites and we’re expecting something to unfold in the next six months,” Bradley said.
“This is a good example of how industry and labour work together. Everybody wins.”
Observer Article ID# 2998557
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