Alcan and USW Reach new long-term Collective Labour Agreement at Alma Aluminum Smelter in Quebec
12/22/2006
Saguenay, Canada – December 22, 2006 – Alcan announced today that more than 90 percent of the hourly and office employees represented by the United Steelworkers (USW) union at the Alma primary aluminum smelter in Quebec have voted to ratify a new long-term collective labour agreement. USW members voted on the terms of the agreement on the 21st and 22nd of December, 2006. The contract is expected to be signed on December 27, 2006.
“Alcan is very pleased with the outcome of the vote. It is a clear demonstration that the parties are determined to work together toward common objectives, including the potential expansion of the Alma smelter,” said Jean Simon, President, North America, Alcan Primary Metal Group.
The new contract is effective as of January 1, 2007 and initially runs through December 31, 2011. The contract will be automatically extended to December 31, 2015, if Alcan has begun work on expanding the Alma smelter by the end of 2010.
The agreement provides for competitive annual wage increases based on a formula largely similar to that used by Alcan in Quebec since 1998, which compares wage increases across a group of Quebec’s twelve largest, unionized industrial companies. Historically, the average wage increase in Quebec's labour market has been approximately 2.5 to 3 percent per annum.
The Alma smelter has a capacity of 408,000 tonnes and employs approximately 1,000 people. Today, Alcan has a global smelting capacity of 3.5 million tonnes per year, represented by the Company’s network of 21 smelters in 10 countries.
Upon the contract’s signing, all of Alcan’s unionized facilities in Quebec will be covered by long-term, secure labour agreements.
Alcan Inc. (NYSE, TSX: AL) is a leading global materials company, delivering high quality products and services worldwide. With world-class technology and operations in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication, engineered solutions as well as flexible and specialty packaging, today’s Alcan is well positioned to meet and exceed its customers’ needs. Alcan is represented by 65,000 employees in 61 countries and regions, and posted revenues of US$20.3 billion in 2005. The Company has featured on the Dow Jones Sustainability World Index consecutively since 2003. For more information, please visit: www.alcan.com.