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USW Affiliate in Québec Locked Out by Rio Tinto at Aluminium Plant

9 January, 2012

Workers employed by Rio Tinto Alcan, the global mining giant’s aluminium producer, were locked off their jobs in the Canadian province of Québec on 1 January in a dispute centering on the company’s ceaseless subcontracting. Some 780 metalworkers, represented by Syndicat des Métallos d’Alma Local 9490, affiliated to the United Steelworkers (USW), were thrown off their jobs at contract expiration at one of the company’s most modern plants, the Alma, Saguenay-lac-Saint-Jean region, Québec smelter.

The three bargaining units of the union voted to reject a new contact late in December after the company refused to limit subcontracting. The lockout at the end of a prior five-year contract comes before USW Local 9490 had even submitted demands regarding salary adjustments, vacations, or benefits.

The three bargaining committees are seeking a floor of 750 unionised jobs at the Alma facility and a halt to subcontracting that reduces full-time, stable jobs to levels below that. In recent years, since Rio Tinto purchased Canada-based Alcan for US$39 billion in 2007, Alma management has used each worker retirement and other reductions in force as a means to reduce costs and manpower by contracting out more and more work.

USW District Five Director Daniel Roy

Last year, USW District Five Director Daniel Roy said Rio Tinto has removed some C$7.4 million in salaries and purchasing power alone from the resource-rich region. Roy and leaders of Local 9490 will hold a press conference in Alma on 13 January to highlight the negative economic impact of the lockout and Alcan’s insistence on unlimited contracting out rights.

The union states that the average C$36-an-hour unionized wage rate is reduced to about C$16 with each subcontract employee.

On 3 January, Alcan succeeded in Québec Superior Court in obtaining a temporary injunction limiting the number of pickets at the main plant gate to 20. Locked-out picketers must remain at least 500 feet from the entrance. A full hearing on that injunction will happen tomorrow, 10 January.

Rio Tinto Alcan announced force majeure at the aluminium smelter on 3 January, stating that it would operate only 122 of 432 electrolytic production cells. Alcan said it would operate at one-third capacity with use of 200 management and other personnel. The USW has lodged a complaint with the provincial labour board that Alcan is violating Québec legislation by using scab or replacement workers during a labour dispute.

The Alma operation at full capacity can produce 438,000 tonnes annually and in 2010 Alma accounted for 11% of Rio Tinto’s global aluminium production. Rio Tinto Alcan operates two smelters in the Saguenay-lac-Saint-Jean region and has a 25% stake in a third, in Bécancour where Alcoa is the majority partner.