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SUN COMPANY: UNIQUE COLLECTIVE BARGAINING AGREEMENT INCLUDES PAYMENT OF RESTRICTED STOCK

 SUN COMPANY: UNIQUE COLLECTIVE BARGAINING AGREEMENT
 INCLUDES PAYMENT OF RESTRICTED STOCK
 PHILADELPHIA, July 2 /PRNewswire/ -- In what is believed to be a unique provision in collective bargaining agreements, employees represented by the Oil, Chemical, and Atomic Workers Local 990 in Philadelphia will receive 100 shares of restricted Sun Company (NYSE: SUN) stock as part of a contract negotiated between the union and Sun.
 Sun operates five refineries in the United States and markets petroleum products under the Sunoco and Atlantic brands, predominantly in the Northeastern part of the country. OCAW Local 990 represents 294 workers at Sun's 130,000-barrel-a-day refinery in Philadelphia.
 "The proposal originated with the union as a way to resolve certain economic aspects of the negotiations," explained David L. Rineer, Sun's manager of Labor Relations. "The company carefully considered this unique approach and decided this could be a win-win solution, so we agreed to the proposal."
 The agreement calls for Sun to provide each represented employee with 100 shares of restricted Sun Company stock -- restricted for sale for three years. The actual number of shares received will be less than 100 due to income tax withholding provisions. Sun stock closed at 25-7/8 on July 1, making the current value of the 100 shares $2,587.50.
 "If the stock price goes up, we get a better deal," said Henry E. Ferris Jr., chairman of the union negotiating committee. He also said that stock ownership by employees provides intangible benefits such as solidifying ties with the company and encouraging a more participative relationship between union and management. Sun acquired the Philadelphia Refinery as part of its 1988 purchase of Atlantic Petroleum Corp.
 Ferris said the stock payment was in addition to "a reasonable general wage increase" and the settling of a number of difficult issues for the company and union.
 "This stock payment is similar to the way the top executives of Sun Company are taking their pay raises," he said. "What we do here in the refinery can affect the company's profitability and thereby increase the value of this settlement."
 Sun recently announced that, during the next three years, increases to the base pay of six top executives will be provided in the form of rights to restricted Sun stock, with the number of shares awarded based on the price of the stock at the time the individual was appointed to the position. The ultimate value of the pay increase will therefore be greater or lesser depending on whether the stock price increases or decreases between the date of appointment and the date the restriction lapses.
 Sun Chairman and CEO Robert H. Campbell said he was pleased with the innovative settlement that negotiators worked out. "We feel this represents a vote of confidence in Sun Company -- especially since the idea originated with a member of the union."
 The contract was ratified on June 25.
 /delval/
 -0- 7/2/92
 /CONTACT: Bud Davis for media, 215-977-3485, or Tim Hughes for investors, 215-977-6544, both of Sun Company/
 (SUN) CO: Sun Company Incorporated; Oil, Chemical, and Atomic Workers
 Local 990 ST: Pennsylvania IN: OIL SU:


CC -- PH016 -- 6201 07/02/92 13:33 EDT
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Publication:PR Newswire
Date:Jul 2, 1992
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