Alcoa, UAW fail to reach agreement for Cleveland plant

Alcoa announced November 6 that it has not reached an agreement with United Auto Workers Local 1050 on a new labor contract covering approximately 830 employees at the company’s Cleveland Works facility. Following a work stoppage November 6 by union employees, Alcoa immediately implemented a business continuation plan to operate as much of the manufacturing process as possible.

“We entered negotiations with the hope of increasing our competitiveness while preserving jobs in Cleveland and the standard of living of our employees,” said Brett McBrayer, Alcoa’s Cleveland Works plant manager. “It is unfortunate that we have not been able to reach a new agreement. We will, however, continue to be attentive to our customers and try to protect jobs during this period of uncertainty.”

Alcoa’s offer to the union included:

• A competitive health care plan, with modest premiums and low deductibles (the same plan ratified in June by 9,000 United Steelworkers at 15 other Alcoa locations). Employees currently pay nothing toward their health care benefits other than a nominal co-pay at the doctor’s office.

• An attendance policy to help manage high absenteeism and reward good attendance.

• An increase in pension benefits rewarding longer years of service at a higher rate.

•Wage increases amounting to nearly 9 percent over the life of the contract.

“Cleveland Works is challenged by rising health care costs, increased utility costs and low-cost competitors. We are dealing with competitors in countries whose costs are as much as 30 percent lower than ours,” said McBrayer. “We must contain our costs, improve productivity and grow our business to be globally competitive. Having a fair competitive long-term labor agreement, like the one offered to UAW Local 1050, would help better position us to secure our future in Cleveland.”

Additional information on negotiations can be found at www.alcoaclevelandnegotiations.com.

About Alcoa’s Cleveland Works Facility
Alcoa’s Cleveland Works facility manufactures forged aluminum wheels for the heavy-duty truck and automotive markets, and forged products for the aerospace and industrial markets. Approximately 1,250 people support the Cleveland operations, which straddles Cuyahoga Heights and Newburgh Heights on Harvard Avenue. Established in 1917, Cleveland Works has a rich history in Cleveland supporting multiple generations. The company contributes approximately $249 million to the Cleveland community in payroll, goods and services, and taxes.

About Alcoa Inc.
Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, 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 to customers. The company has 129,000 employees in 44 countries.