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Employee Relations—Programs & Actions

Labor Agreements
Each year, we negotiate numerous labor agreements throughout the world. In total, we have more than 80 agreements. In the United States, we have a master agreement covering 10 locations, and an additional 20 standalone labor agreements.

In 2008, we negotiated four labor agreements in the United States with various labor unions, and there were no work stoppages. In addition, the sale of our packaging business resulted in the divestiture of 10 unionized plants.


Employee Engagement
In 2008, we conducted our third annual global employee engagement survey—Global Voices, One Company. Nearly 89,000 employees (95% of the workforce) were invited to participate in the web- and print-based survey, which was produced in 15 languages and contained 35 questions measuring 10 dimensions of the employee experience. In addition to employee engagement, the survey gauges manager effectiveness, leadership/vision, communication, growth and development, involvement and belonging, recognition, quality, safety, and work conditions.

The overall response rate remained high at 77% versus 68% in 2007, and overall employee engagement increased to 52% from 50% the prior year.

Consistent with 2006 and 2007, we reviewed the survey results with employees and put action plans in place to improve the overall engagement levels. We have a robust communication and action planning process and are integrating our employee engagement results into the metrics we use to evaluate leadership effectiveness of senior leaders.

We will again identify action items based on survey feedback, and we will work to improve the year-over-year results. Increasing employee engagement will result in improvement in critical performance areas, such as retention, absenteeism, productivity, and overall business results.


Freedom of Association
No matter where we operate around the globe, we believe in freedom of association. In the United States, 59% of our approximately 21,500 production and maintenance employees are represented by labor unions.

In Mexico, senior Alcoa leaders meet around four times a year with employees of the Piedras Negras and Acuna facilities in the presence of Alcoa shareholders, primarily members of the Interfaith Center on Corporate Responsibility. The meetings include a review of employee issues and discussion on current and future business conditions. Any issues raised in the meeting are investigated, addressed if required, and reported on at a future meeting.


Protecting Employees
After a research study by Yale University’s Occupational and Environmental Medicine Program documented an association between injuries and extended work hours, we implemented overtime caps of 16-hours-per-day and 64-hours-per-week (66 hours for employees working 12-hour shifts) and require waivers with location manager approval. Additional information can be found in the Safety section.


Case Studies
Smelter Turns Around Contentious Management/Employee Relationship
Engaged Employees Drive Plant Turnaround
Union, Management Jointly Work to Decrease Injuries

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