Extracts from the Wajax Policy Guidebook on
“ethical operations and code of business conduct”

“While our fundamental objective is to provide a superior rate of return to the Company’s shareholders, this objective must be balanced with the interests of other stakeholders, such as our employees . . . . “

Our comment: management’s treatment of our pension plan surplus is clearly a violation of this policy, since they are obviously reserving the surplus for their own use, thus improving the rate of return to shareholders at the expense of the plan members whose contributions created the surplus.

“Wajax is committed to the highest possible ethical standards in all its operations and business practice

. . .  (3) treats all individuals with dignity, respect and fairness.
. . .  (7) maintains open and honest communications with employees.

Our comment: on all of these counts, Wajax management has failed its ethical responsibilities to the pension plan member employees who generated the surplus.

“To foster a climate of trust and openness, we must be honest and forthright in our communications with others within Wajax.  Mutual trust encourages the flow of information we need to make the right decisions and to take appropriate actions. To do otherwise would lead to a climate of distrust, which would seriously impair our ability to operate efficiently and with integrity.”

Our comment:  Wajax management by its conspicuous lack of openness is in fact fostering a climate of distrust and displaying to all that it lacks integrity.  We want and deserve to have the following information:

-      We know from the Company’s last annual report that the surplus in the Plan at December 31, 1999 was $13 million. 

-      Question: based on the actual market value of the pension fund assets at December 31, 2000, what was the amount of the surplus at that date?