Workers at an Alcan Aluminum Smelter Approve a Long-Term Labor Contract

NEW YORK -- Workers at an Alcan Inc. aluminum smelter on Friday ratified a new long-term labor agreement with the aluminum producer.

Alcan said 90 percent of the hourly and office employees represented by the United Steelworkers union at the Alma smelter in Quebec voted to approve the contract.

The agreement provides for annual wage increases based on a formula which compares wage increases in a group of Quebec's twelve largest, unionized industrial companies. The average wage increase in the labor market in Quebec has been about 2.5 to 3 percent each year.

The contract is expected to be signed on Dec. 27. It will be in effect starting Jan. 1 and will last through Dec. 31, 2011. The company will extend the contract by four years if it has already started work on a smelter extension by the end of 2010.

Alcan said once the agreement is signed, all of its unionized facilities in Quebec will be covered by long-term labor agreements.

The Montreal company has a work force of 65,000 people at mills, smelters and other operations around the world.

Shares of the aluminum producer fell 26 cents to $54.09 in trading on the Toronto Stock Exchange.