Vancouver, British Columbia-based Finning International last week announced that the hourly employees of its Canadian division, Finning (Canada), represented by the International Association of Machinists and Aerospace Workers - Local Lodge 99, have approved a new three-year collective agreement.

The agreement covers Finning operations in Alberta and the Northwest Territories and expires on April 30, 2008. The new agreement provides for a wage increase of 4.5 percent in year one, and 4 percent in each of years two and three, retroactive to May 1, 2005. The settlement also provides improvements in allowances, shift premiums and pension benefits. The ratified agreement retains management's right to contract out work and establishes guiding principles for contracting out decisions and the rights of directly affected employees.

Finning's 1,070 hourly workers in Alberta and the Northwest Territories have been on strike since Oct. 20 and returned to work last week. Finning (Canada) operations in B.C. and the Yukon Territory operate under a separate collective agreement and have not been affected by this labor action.

Finning International is one of the world's largest Caterpillar equipment dealers. The company sells, rents, finances and provides customer support services for Caterpillar equipment and engines in Western Canada, the U.K., and South America. Finning also owns Hewden, the largest equipment rental business in Europe. The company is No.17 on the RER 100.