Truckers Strike Update

News Item Entered: Friday, July 15, 2005

July 14, 2005


Dear Customer,

Unfortunately this week's negotiations between the trucking company owners and the group of drivers known as VCTA have not gone well.

After nearly two weeks of talks, the wish list from the VCTA has increased from 8 listed issues to what we understand to be 26 items.

Therefore, there is no optimism that there will be a settlement this week, and it appears that this will now carry over into next week as well.

Because of this continuing impasse, and because we understand how seriously this is impacting your business, Schenker has engaged the law firm of Taylor Jordan Chafetz, and has taken the first step of filing a Writ against the VCTA, holding them responsible for costs and damages incurred.

Several other companies have joined in this effort, and we understand that a second major retailer will also be filing a similar Writ.

We hope that the VCTA to understand that their actions are irresponsible and that the business community is increasingly holding them liable.

In the meantime, Schenker is also evaluating other options and will report further information back to you.

Thank you.


With best regards,
Schenker of Canada Ltd.