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Following our one-year experience with the two vehicle leasing companies, PHH and TransportAction, we completed fleet reviews in June and July. We have decided to split CUPEs fleet equally between the two companies. The Atlantic, Maritimes, Quebec and British Columbia will remain with PHH and the other provinces will all be serviced through TransportAction.

For the 2004 model year, despite the usual vehicle price increases by the manufacturers, we were able to keep our capital cost to almost the same level by negotiating rebates and concessions with the manufacturers.

In June 2003, we renewed our national fleet insurance with Aviva (formerly called CGU). Our insurance premiums were raised substantially, as is the experience across the country in the insurance industry.

We are now in the process of reviewing our cellular phone rate package plans. Also, discussions will take place with other wireless communication companies in order to get the best prices for our staff.