Alcoa and union ink labor agreement at Quebec smelter
Thursday, 07 May 2009
Reuters quoted officials at Alcoa and the union said that Unionized workers at Alcoa's Becancour aluminum smelter in Quebec have reached a three year labor deal with management that will see work hours reduced by 15%.
Workers will receive raises of 1.9%, 2.5% and 3.3% through 2012 under the deal, which workers ratified late last week. The plant employs about 1,000 people.
Mr Bob Gallagher a spokesman for the United Steel Workers Union said that the cut in work hours allows Alcoa to fulfill a pledge to cut payroll costs by 15% without cutting production, which had been the alternative to the work hours concession.
Mr Pierre Despres a spokesman for the company's Canadian operations said that the company will be able to maintain production with the reduced work hours. Mr Despress said that "The bottom line does not change."
Alcoa said that in March it planned to chop payroll costs by 15% at its Canadian smelting operations in Quebec. In addition to Becancour, Alcoa also operates smelters at Baie-Comeau and Deschambault.
Alcoa had been considering shutting down one of the three potlines at the plant, which would have stopped 136,000 tonnes of production at the 420,000 tonne a year plant. Alcoa owns 75% of the plant and Rio Tinto Alcan owns 25%.
