USW: Locked-out ABI Workers Rally at Alcoa Shareholders Meeting

PITTSBURGH, May 9, 2018 /PRNewswire-USNewswire/ -- The United Steelworkers (USW) today said that about 100 locked-out workers from the ABI aluminum smelter in Bécancour, Quebec, are demonstrating outside the annual general meeting of Alcoa shareholders at the Westin Convention Center Hotel.

They are protesting the lockout imposed by the company on Jan. 11, 2018, and its failure to negotiate a settlement since then. Locked-out Quebec Steelworkers drove for more than 15 hours from Bécancour to denounce the lockout directly in front of Alcoa's executive management and shareholders.

A delegation of proxy-holding USW representatives will participate in the meeting. In negotiations, the main issues are pension plan funding and seniority rights in personnel hiring and transfers.

"We're here to tell the shareholders that they will lose on the deal if the lockout continues," said USW District 5 (Quebec) Director Alain Croteau, who addressed the rally before the shareholders meeting.

"With the costs associated with shutting down and restarting two pot lines at the smelter, combined with reduced production, this lockout has already cost ABI $164 million in lost income," Croteau said. "ABI has announced that it now intends to come back to the bargaining table, so we are asking shareholders to insist that these negotiations are meaningful and productive, with company negotiators fully empowered to settle the dispute."

"Our members are determined," said USW Local 9700 President Clément Masse. "We're not coming here hat in hand."

"Does the company really have to continue to rack up losses before settling? This lockout makes no sense. We have come to ask the shareholders to make a difference in terms of how long this dispute lasts," Masse said. "Today is the one day they can hold their executives accountable. Prices are good and the Midwest Premium is up, so it's totally in Alcoa's interests to produce at full capacity. For our part, we're ready to do what we do best: make high-quality aluminum."

Shutting down and restarting the smelter's pot lines costs $100 million, while ABI's lost monthly profits due to production slowdowns amount to at least $16 million. The USW believes these estimates are very conservative, in that they do not account for losses associated with lost production of profitable, value-added products such as aluminum plates and billets.

Background:

- Alcoa, which holds 74.9% of ABI shares, and Rio Tinto, which holds 25.1%, decided to lock out ABI employees on Jan. 11, 2018. Immediately prior to the lockout, the union bargaining committee had opened the door for employees to migrate their pension holdings from a defined-benefit plan to a member-funded pension plan. This compromise addressed all of the concerns expressed by shareholders who wanted to eliminate pension plan liabilities from the financial statements. Only the funding terms and conditions remained to be settled by the parties at the time.

- The only other major outstanding issue is respect for workers' seniority rights in personnel transfers. Workers want all job vacancies to be posted in the plant first before being opened to outside recruitment.

More information, contact: Clairandrée Cauchy – (514) 774-4001 or [email protected]
Bob Gallagher (Toronto) – (416) 544-5966 or [email protected]
Tony Montana (Pittsburgh) – (412) 562-2592 or [email protected]

SOURCE United Steelworkers (USW)

Related Links

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