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Alcoa, union ink labor agreement at Quebec smelter

Wednesday, May 06, 2009
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TORONTO, May 5 - 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 percent, officials at Alcoa and the union said on Tuesday. The cut in work hours allows Alcoa to fulfill a pledge to cut payroll costs by 15 percent without cutting production, which had been the alternative to the work hours concession, said Bob Gallagher, a spokesman for the United Steel Workers Union. 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 percent of the plant, and Rio Tinto Alcan owns 25 percent. The company will be able to maintain production with the reduced work hours, said Pierre Despres, a spokesman for the company's Canadian operations. "The bottom line does not change," he said. Workers will receive raises of 1.9 percent, 2.5 percent, and 3.3 percent through 2012 under the deal, which workers ratified late last week. The plant employs about 1,000 people. Alcoa said in March it planned to chop payroll costs by 15 percent at its Canadian smelting operations in Quebec. In addition to Becancour, Alcoa also operates smelters at Baie-Comeau and Deschambault.

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