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ALCAN AND USW REACH NEW LONG-TERM COLLECTIVE LABOUR AGREEMENT
Alcan announced today that more than 90 percent of the hourly and office employees represented by the United Steelworkers union at the Alma primary aluminum smelter in Quebec have voted to ratify a new long-term collective labour agreement. “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 this year 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.
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