TORONTO, January 14, 1999 - Quality Meat Packers today responded to a union's advice that they were prepared to meet at any time, saying "there is no point in further discussions.

"Our last offer was our best offer," said David Schwartz, President and Chief Executive Officer of Quality Meat Packers. "There's no point in talking. We can't do any more."

Mr. Schwartz said the enhanced offer improved on the company's first offer by $3.6 million but was only possible if the employees came back to work and the company was able to earn the money necessary to find it.

The enhanced offer included a freeze of wages at the higher level for 12 weeks, a $1,000 bonus for current employees working through December 3, 1999, a reduction in the hours required to be worked before overtime would be paid, a $150 bonus for low absentee time and preferred status over part time employees for overtime. Of the $3.6. million improvement, $2.5 million would have been paid to employees in the first year of the contract.

"We stretched the company to the limit to make that offer," Mr. Schwartz said. There's nothing left."

He said a key part of the improved offer was an agreement to give employees 12-weeks pay at their old, higher wage rate. He said the company does not have the cash in hand to fund the 12 weeks at the higher rate. To do that, we have to be back at work and earning money.

"But every week we're not open takes one more week off the 12-week offer. The offer is now down to 11 weeks at the higher rate. Every week this strike drags on the 12-week offer is reduced by one more week and the company's survival is put into greater danger.

The hog supply opportunity is here today. If we're not working, this week's hogs will be processed elsewhere. That means that for every week that goes by that we are not working we lose the opportunity to guarantee hours of work for our employees, to alleviate the producers' plight and to process those hogs.

"Employees have to understand how critical this situation is. There is no more money. If we were given the choice of increasing our last offer or closing our plants, we would have to close the plants. The situation is really that serious."

Mr. Schwartz said the fate of Quality Meat Packers "is now in the hands of our employees and their union. "At any time the union can call a meeting to vote on our last offer. But the clock is ticking. Every week they delay reduces the offer."

The last offer, which was rejected by the union earlier this week, would have brought the total package paid to employees to over $11.5 million more than Quality Meat Packers' major competitor's existing agreement.

The competitor's agreement, signed with the United Food and Commercial Workers Union last April, effectively established the industry's competitive wage and benefit rates. Since that time other meat processing plants across Canada have settled at comparable wage rates.

Mr. Schwartz said Quality Meat Packers had to adjust its wage rates to bring them closer to the industry standard and make the company competitive long term.

"Having said that, our enhanced wage offer actually translated into $1.05 an hour more on average than what other industry processors are now paying."

Quality Meat Packers is a family-owned and operated business, founded in 1931 by Nathan Schwartz, President David Schwartz's grandfather. The company's two Toronto plants employ more than 950 people

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