Union rejects ABI Al smelter labor contract

Locked-out union employees at the ABI aluminum smelter in Becancour, Quebec, have rejected management's latest labor contract, keeping production curtailed to less than a third of capacity.

The new agreement asked for concessions on several issues, including pensions, seniority and scheduling, among others, the United Steelworkers Local 9700 said this morning.

Alcoa's proposal also included a "return-to-work protocol" union members refused to accept.

"The company proposed that locked-out employees would return to work gradually, over a period of at least 10 months – and possibly longer – during which time managers and contract workers would take the jobs of regular employees," the union said.

Members voted against the contract by an 82pc margin.

"ABI's management is disappointed that the union declined a fair and competitive offer. Ratification of the offer would have solved the labor conflict with a plan to resume operations," Alcoa told Argus.

ABI—75pc-owned by Alcoa and 25pc-owned by Rio Tinto—is one of the largest primary aluminum smelters in the Americas, with a nameplate capacity of more than 400,000t/yr across three reduction lines.

Union employees were locked out by management in January 2018. By December 2018, the facility's output was cut down to half of one line, or about 69,000 t/yr of production.