Kraus Workers Ratify New Contracts

Waterloo, Ontario, Canada, June 5, 2012 -- Union workers at the Kraus Group voted in favour of new contracts.

Both the Kraus and Strudex Fibers units of the plant, which makes flooring and carpeting, voted to ratify their new collective agreements, with the hope that the concessions will keep the plant operating.

The company recently reached an agreement to sell a majority stake in the business to Hilco Canada, a subsidiary of Hilco UK, a British private equity firm that specializes in restructuring.

But the deal was contingent on new contracts with the workers to achieve cost savings.