June 16, 2009

Alcoa Victorian Operations responding to global financial crisis

Alcoa’s Victorian Operations is working through a continuing process to consider the most effective options for managing through the global economic downturn and ensure its long-term sustainability.

Discussions today with Alcoa management at the request of the Australian Workers Union (AWU) forms part of the ongoing process and the company remains committed to further discussions.
 
General Manager for Victorian Operations, Arnaud Soirat said the company has been working through the process of decisive action, engaging employees, unions representatives and other stakeholders to minimise job losses since the outset of the global financial crisis.
 
“An ongoing open and two-way dialogue with our employees and unions has occurred but further discussion and action is required while we continue to face unprecedented economic challenges that are severely impacting our business,” Mr Soirat said.
 
“Unions and the State and Federal governments have been urging employers to explore all options to manage through the downturn and that is the process we remain committed to,” he added.
 
Mr Soirat acknowledged the ongoing process of discussion with stakeholders and its focus on cost reduction initiatives and potential job losses was concerning for all employees and their families.
 
“We are in a time of great uncertainty and have some very difficult decisions to make about our future, but we believe that the process of exploring the most effective options for our sustainability while seeking to minimise job losses needs to continue," said Mr Soirat.
 
During 2009, Alcoa’s Victorian Operations at Point Henry, Anglesea and Portland have been rigorously reviewing all elements of the business - including production, labour and supply agreements - to realise sustainable levels of cost and profitability.
 
Alcoa’s effort to manage through the economic downturn and emerge stronger has been well documented publicly and continues to be the subject of regular external briefings to stakeholders.
 
Alcoa of Australia’s Managing Director Alan Cransberg has recently given presentations in the Geelong and Portland communities where he outlined the extraordinary challenges the company is facing and Alcoa’s ‘7-Step plan’ to ensure the sustainability of the business.
 
To see how Alcoa is managing through the global economic downturn visit: http://www.alcoa.com/australia/en/info_page/economic_downturn.asp