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April 13, 2005
Alcoa to Offer an Early Retirement Program to its Employees at the Baie-Comeau Smelter
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Baie-Comeau, April 13, 2005 – The Alcoa aluminum smelter in Baie-Comeau announces that it will offer an early retirement program to its salaried and unionized employees with a view to abolishing 200 permanent jobs. This measure aims at enhancing the plant’s productivity and competitiveness.
In the current global context of the industry, all aluminum producers, including Alcoa’s smelters, are accomplishing huge efforts to reduce their operational costs and enhance their profitability. New smelters, with their very low production and energy costs, are forcing older smelters such as the Baie-Comeau plant to find various ways to reduce their costs simply to remain competitive and attract capital investments.
Discussions will be entered into immediately with the unions regarding the early retirement program and to review certain practices and methods current at the smelter. Management plans to act diligently so as to reduce as much as possible all apprehension and uncertainty for salaried as well as unionized employees
“Deciding on reducing the number of jobs is never easy, and such a decision must be deeply thought-out,” says Pierre Morin, general manager of the Alcoa smelter in Baie-Comeau. “This is why we have decided to begin with an early retirement incentive program. The whole process will unfold in such a way as to ensure the respect and preserve the dignity of our employees,’’
Management reasserts its intention to keep the plant open at least until 2010, that is for as long as environmental requirements, energy availability and market conditions will permit. In fact, in 2005, the company is investing over $26 million (CAN) in the smelter in the framework of roughly 50 projects aimed at keeping it up to standards and enhancing its performance.
The Alcoa aluminum smelter in Baie-Comeau numbers 1,800 employees and has an annual production capacity of 437,000 metric tons. In addition to the Baie-Comeau Smelter, Alcoa Canada Primary Metals also operates Aluminerie de Bécancour, the Bécancour Rod Plant and the Deschambault Smelter and it injects more than a billion dollars every year in the Quebec economy. In Canada, Alcoa employs more than 6,000 people and operates 23 transformation plants and other installations. Alcoa Canada annually produces more than 1.3 million metric tons de ingots, cast parts, billets and rod.
Alcoa is the world's leading producer of primary aluminum, fabricated aluminum and alumina, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses as a single solution to customers.
In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap(R) aluminum foil, Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding, closures, precision castings, and electrical distribution systems for cars and trucks.
The company has 131,000 employees in 43 countries and has been a member of the Dow Jones Industrial Average for 45 years and the Dow Jones Sustainability Indexes since 2001. More information can be found at www.alcoa.com
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