Alcan Inc. and the Canadian Auto Workers have reached a tentative contract agreement for 1,300 production and maintenance workers at the company’s aluminum smelter in Kitimat, B.C.
The deal is a “transition” agreement to ensure labour stability while construction to modernize the 55-year-old smelter goes on until 2011, the union said.
Alcan has been steadily reducing its workforce in Kitimat, currently at 1,550, down from 2,500.
Modernization of the smelter would increase its production by more than 60 per cent, the company said, from its current 245,000 tonnes per year to about 400,000 tonnes per year, however it would also reduce the employee count further to about 1,000.