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28 June, 2010
Some 5,400 members of the United Steelworkers (USW) in the US gave approval to a four-year labour agreement on 24 June with Alcoa Inc., the world’s second largest aluminum producer. The accumulated vote, by workers at 11 company facilities in eight US states, was 68% in favour, and comes three-and-a-half weeks after USW and Alcoa narrowly escaped a strike.
The new labour accord was a compromise, with the USW fending off a complete overhaul to workers’ health care coverage that would have included a two-tier system, denying all new hires any future retiree health coverage whatsoever. In return, the union agreed to an increase in worker-paid health premiums and a slight decrease to medical coverage in the existing plan.
The agreement also contains lump-sum payments in the first two years instead of percentage salary increases, with 2.5% increases won for 2012 and 2013. The final agreement also contains an increase in the pension benefit pay-out, and preserves longstanding seniority provisions.
But most significantly, the USW’s Alcoa Aluminum Negotiating Council – consisting of leaders from 11 branch unions in addition to four smaller unions – rejected Alcoa’s “Choices” health care plan that would have dramatically reduced coverage while increasing workers’ out-of-pocket costs.
USW District 7 Director, Jim Robinson
“The new contract does raise employee premiums, but they will still be much less than paid by Alcoa salaried and non-union employees,” said USW District Seven Director and Alcoa Negotiating Chair Jim Robinson.
“Alcoa was not only insisting on implementing a plan that would have required our members to pay much higher costs for a lower level of coverage, but Alcoa also wanted the right to set future costs and coverage at whatever the company deemed appropriate,” said Robinson.
Alcoa US workers covered under the contract will receive a ratification bonus of US$1,250, with another bonus in 2010 amounting to US$1,000. In 2011, they will receive a lump-sum pay-out of US$1,750.
The workers are employed at smelters and rolling-mill operations in Alcoa, Tennessee; two plants in Massena, New York; Badin, North Carolina; Warrick, Indiana; Lafayette, Indiana; Davenport, Iowa; Gum Springs, Arkansas; Point Comfort, Texas; Rockdale, Texas; and Wenatchee, Washington. The facilities comprise 40% of all US aluminum production.
The USW and Alcoa negotiated for six weeks in April and May in Cincinnati, Ohio, to achieve a tentative accord. Late on 31 May, with USW branch unions poised to strike, the two sides extended bargaining for 11 hours into 1 June in a successful effort to avoid a strike.
The contract will be backdated to 1 June and will run to 15 May 2014.