BÉCANCOUR, Que. – As aluminum giant Alcoa releases its second-quarter results today, the United Steelworkers (USW) is revealing the true extent of losses incurred by the company’s lockout of workers at its ABI smelter in Bécancour.
Each month of the lockout is depriving Alco and Rio Tinto – co-owners of the ABI smelter – of tens of millions of dollars in revenues and millions in profits, the USW says.
“The lockout is costing Alcoa and Rio Tinto dearly,” said Clément Masse, President of USW/Syndicat des Métallos Local 9700, representing the 1,030 locked-out ABI employees.
“Aluminum prices are healthy right now, so each month that this dispute drags on represents lost revenues and profits,” Masse said. “But the lockout also is costing Quebecers dearly, since Hydro-Québec has been deprived of $114 million in electricity revenues to date – and counting.”
The lost revenues and profits stem from a two-thirds reduction in production at the ABI smelter and a complete cut in production of ABI’s value-added products such as aluminum billets and slabs, combined with current healthy prices of aluminum and the Midwest premium, the union says.
“The effects of this lockout are disastrous. Alcoa and Rio Tinto are losing, the Quebec government and all Quebecers are losing, workers and their families are deprived of their livelihood and the entire community is affected,” Masse said.
“Everyone loses, so why let this continue? It is high time to abandon this approach and to get back to producing high-quality aluminum at an efficient and productive smelter that operates with green electricity.”
The ABI smelter is 74.9% owned by Alcoa, with Rio Tinto owning the remaining 25.1%
Prior to the lockout, the USW and the company were close to an agreement and were working to resolve two outstanding issues – pension plan changes and language related to seniority and employee turnover. However, after the Quebec government recently appointed a special mediator to assist in the negotiations, the company has brought new demands for concessions from the locked-out workers. Earlier this month, more than 90% of the workers voted to confirm their support for their leadership and bargaining committee.
Clairandrée Cauchy, United Steelworkers/Syndicat des Métallos Communications, 514-774-4001, ccauchy@metallos.ca
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