Alcoa, union reach tentative agreement
June 1, 2010 Details of the four-year agreement between Alcoa and the
Steelworkers Union were not immediately available. It still must be
ratified by union members in 10 states.
"We have spent the last two weeks working through some tough
issues, and feel that this tentative agreement creates a future for
good paying jobs at these plants," Mick Wallis, president of Alcoa
North American Rolled Products, said in a statement.
In an e-mailed statement, the union declined to discuss details
until representatives meet with union members.
The contract was extended about half a day beyond its expiration
at midnight Monday, as both sides continued to discuss terms.
When the negotiations began in mid-April, Alcoa identified three
key issues it wanted to address: health care, wages and scheduling
flexibility.
It proposed a change in health-care benefits and a compensation
package for new employees that would offer the same wages but
exclude retiree medical benefits and include fewer instances in
which wage premiums would be paid.
Alcoa also wanted to make some operational practices more
flexible, such as adjustments in work schedules and staffing
levels.
Alcoa has seen improving market conditions after it was battered
during the recession when demand dried up for aluminum. The company
eliminated thousands of jobs, curbed production and sold businesses
during the downturn.
Alcoa, based in Pittsburgh, expects to benefit this year from a
rebound in global automotive production and has forecast a 10
percent increase in worldwide aluminum consumption.
The last time the steelworkers union went on strike against
Alcoa was in 1986.
The current contract covers about 5,400 employees at 10
facilities in Texas, Arkansas, Washington, Tennessee, Indiana, New
York, Iowa, and North Carolina. Alcoa has about 59,000 employees in
31 countries.
Alcoa shares fell 16 cents to $11.48 in afternoon trading.