Summit Materials Continental Cement Company Successfully Concludes Negotiations of New Collective Bargaining Agreement with Union Employees at its Hannibal Plant

Rhea-AI Summary

Summit Materials, Inc. (NYSE: SUM) announced a new Collective Bargaining Agreement (CBA) with the United Steelworkers Local 11-205 for its subsidiary, Continental Cement Company, at the Hannibal, Missouri plant. This five-year CBA, effective until April 2027, includes annual wage increases of 5% for the first three years and 4% for the last two, alongside a ratification bonus for employees. The agreement aims to enhance job classification efficiency and reduce reliance on third-party contractors, improving the plant's reliability. The plant produced over 1 million tons of cement in 2021 and transitioned to lower-emitting Portland Limestone Cement in August 2022.

Positive

• New CBA provides 5% annual wage increases for the first three years and 4% for the last two years.
• Includes a ratification bonus to offset lost wages for employees.
• Implements a streamlined job classification structure for improved efficiency.

Negative

• None.

Mutual Benefits Include A Five-Year Agreement with fair Annual Wage Increases, Job Security Enhancements, and Flexibility in Certain Job Classifications

DENVER--(BUSINESS WIRE)-- Summit Materials, Inc. (NYSE: SUM) (“Summit,” “Summit Materials,” “Summit Inc.” or the “Company”), a leading vertically integrated construction materials company, announces that its subsidiary, Continental Cement Company, LLC (“Continental Cement”) has successfully completed negotiations with the United Steelworkers Local 11-205 (“Union”) on a new, mutually agreeable Collective Bargaining Agreement (“CBA”) at its Hannibal, Missouri, cement plant. The CBA extends through April 2027. “Continental Cement is thrilled to have the union membership ratify the new CBA, which we believe provides a compelling opportunity for our hourly employees,” commented David Loomes, Continental Cement President. “We thank the Union, the negotiating committee, hourly employees and the Plant Leadership Team for their role in the process and helping reach this outcome after a long and often intense negotiation process. We are proud to serve the community and to provide secure, well-paying jobs for our hourly and salaried employees. Most importantly, we are proud of our safety record and improved relationship with regulators – both of which are non-negotiable core values for CCC / Summit Materials.”

The new CBA provides a generous wage settlement and addresses key elements of improving the efficiency and competitiveness of our Hannibal cement facility. The key terms of the new CBA are:

• The new CBA will run through April 2027
• Annual salary increases for the first three years are 5% per year – and 4% per year for the last two years
• Employees will receive a once off ratification bonus to offset lost wages since last increase
• Securing a streamlined job category classification structure for all new employees
• Giving hourly employees the opportunity to grandfather into the prior structure or to switch to the new structure, which will provide most employees an immediate pay increase above the contractual wage increases
• A call out system which will reduce the reliance on third party contractors and contribute to further improved plant reliability

“We thank the negotiating teams and employees for reaching this point and ratifying the CBA while upholding our Summit values of safety, integrity, inclusivity, and sustainability,” added Anne Noonan, President and CEO of Summit Materials. “We are looking forward to the future and believe the new CBA provides a win-win for our hourly employees and Continental Cement.”

The new contract period at the Continental Cement Hannibal plant continues through April 30, 2027. The plant produced over 1 million tons of cement in 2021, and fully converted to lower-emitting Portland Limestone Cement in August 2022.

To learn more about Summit’s ESG commitment at its Continental Cement facility, please visit https://summit-materials.com/app/uploads/2022/04/Summit-Continental-Cement-and-Green-America-Recycling-Report-2021-Compressed.pdf

About Summit Materials

Summit Materials is a leading vertically integrated materials-based company that supplies aggregates, cement, ready-mix concrete and asphalt in the United States and British Columbia, Canada. Summit is a geographically diverse, materials-based business of scale that offers customers a single-source provider of construction materials and related downstream products in the public infrastructure, residential and nonresidential end markets. Summit has a strong track record of successful acquisitions since its founding and continues to pursue growth opportunities in new and existing markets. For more information about Summit Materials, please visit www.summit-materials.com.

About Continental Cement Company

Continental Cement Company is a leading provider of cement based in Chesterfield, MO with plants in Hannibal, MO and Davenport, IA and 9 distribution terminals along the Mississippi River between Minneapolis, MN and New Orleans, LA. Continental Cement has built its business on consistent quality, superior service, and delivering a great experience since they began producing cement at their Hannibal location in 1903. The Company provides high quality cement for projects along the Mississippi corridor and is a subsidiary of Summit Materials, Inc.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include all statements that do not relate solely to historical or current facts, and you can identify forward-­looking statements because they contain words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "trends," "plans," "estimates," "projects" or "anticipates" or similar expressions that concern our strategy, plans, expectations or intentions. These forward-looking statements are subject to risks, uncertainties and other factors that may cause our actual results, performance or achievements to be different from future results, performance or achievements expressed or implied by such forward-looking statements. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, it is very difficult to predict the effect of known factors, and, of course, it is impossible to anticipate all factors that could affect our actual results.

In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be realized. Important factors could affect our results and could cause results to differ materially from those expressed in our forward-looking statements, including but not limited to the factors discussed in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission ("SEC"), which are accessible on the SEC's website at www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230302005353/en/

Investor Contact

Andy Larkin

VP, Investor Relations

Summit Materials, Inc.

Andy.Larkin@summit-materials.com

Media Contact

Karli Anderson

EVP, Chief People and ESG Officer and Head of Communications

Summit Materials, Inc.

Karli.Anderson@summit-materials.com

Source: Summit Materials, Inc.

FAQ

What are the key benefits of the new CBA for Summit Materials (SUM)?

The new CBA includes a 5% annual salary increase for the first three years and a 4% increase for the last two years, along with a ratification bonus and streamlined job classifications.

How long is the new CBA effective for Summit Materials' Hannibal plant?

The new CBA is effective through April 2027.

What production milestone did the Hannibal plant achieve in 2021?

The Hannibal plant produced over 1 million tons of cement in 2021.

What environmental change did Summit Materials (SUM) implement in August 2022?

In August 2022, the Hannibal plant fully converted to lower-emitting Portland Limestone Cement.