TORONTO – TSX-listed silicon producer Timminco has reached a new five-year agreement with the unionised workforce at its Becancour operations, in Quebec, the company reported on Thursday.

Under the new agreement, which expires in April 2013, wages will not increase from existing levels, which have been in effect since the previous labour contract expired in April 2008, until May 2010.

Wage increases of 2,4%, 2,6% and 2,8% will take effect annually in May 2010, May 2011, and May 2012 respectively, and the company will implement new work schedules to improve efficiency at the Becancour facility, it said.

Timminco, which has reduced silicon production at the plant, said that it 172 union members at the plant have been given temporary lay-off notices.

Of the 375 employees at Becancour, 275 are unionised.

“The extent and duration of such workforce reductions are uncertain,” the company added.

Earlier this week, Timminco said that it had renegotiated supply contracts with two customers.

The economic slowdown and global financial crisis has negatively affected the solar-power industry, resulting in weaker demand for Timminco's solar-grade silicon.

Shares in the company rose 3,6% on Thursday, to C$1,43 apiece by 16:16 in Toronto.

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