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26 July, 2007
The European Works Council (EWC) of Alcan Packaging, facing imminent spin-off by new owner Rio Tinto, won a commitment that an Extraordinary Meeting of the Works Council would be held within 14 days after any announced sale of the company is made. Following frank discussions during EWC meetings on 25 July, where Alcan President and CEO Richard Evans reiterated Rio’s intent to sell Alcan’s packaging businesses, the commitment to hold a further Works Council meeting immediately following an announced sale is welcome news to packaging industry workers’ and their trade unions.
The ICEM, a global union federation of 389 trade unions in 119 countries, applauded the commitment, calling it “an important check-and-balance on corporate governance.” The ICEM also congratulates the EWC and the trade unionists on the EWC for gaining this commitment.
Evans told the EWC that Rio Tinto was hopeful of selling the collection of packaging businesses of as block, that there are serious buyers, and that a sale agreement could be completed soon. Peter Ellis, National Officer of ICEM UK affiliate Unite, welcomed the company’s commitment.
Rio Tinto’s newly acquired flexible and specialty packaging businesses throughout the world are vast. The Australian company could realise €5 billion from a sale. In 2003, the Canadian-based company purchased Norsk Hydro’s packaging units, and the following year Alcan took over French-based Pechiney in a US$3.9 billion stock and cash deal. Alcan’s packaging businesses produce products for the food, personal care, and pharmaceutical sectors.