(Adds comments from union officials, Alcoa; background.)
By Nicole Mordant
May 15 Negotiators for Alcoa Inc and
unionized workers at 10 U.S. plants were "very far part" on
several key issues, including wages and healthcare premium
increases, with less than 12 hours before the expiration of
their labor contract, the United Steelworkers said on Thursday.
Workers at plants including Alcoa's recently expanded
Davenport Works facility in Iowa and fabricated aluminum
products plant in Lafayette, Indiana have voted to give their
negotiators the right to authorize a strike if a contract is not
reached. The authorization does not mean the union will strike.
"The parties continue talking but as of late this morning
they seem very far apart," said Wayne Ranick, the USW's
director of communications, which represents some 6,100 Alcoa
workers across the United States.
A previous four-year contract between the Pittsburgh-based
aluminum producer and the union expires at 12:59 a.m. EDT (0459
GMT) on Friday.
If an agreement is not reached before the deadline, the two
sides could extend the current contract talks if a deal looks
close, workers could go on strike, or the company could lock out
The last strike was in 1986 and lasted six weeks.
"The main sticking points are healthcare premium increases,
wage package and two-tier benefits and pension packages for new
hires," said Ken Cox, financial secretary of USW local 115,
which represents workers at Alcoa's Lafayette plant.
The union has said it had "very modest" wage increases over
the last two contracts.
Alcoa said its goal was to reach an agreement that was "fair
to our employees and positions our business for future success."
"Alcoa and the USW have a proud history of working together,
resolving problems and finding common ground, and we're
confident that we will be successful in doing so again," company
spokeswoman Monica Orbe said.
Negotiations, which began in Pittsburgh in April, come at a
time when Alcoa has been cutting capacity at its smelters to
stem a growing aluminum surplus that has depressed prices and
made a large number of plants uncompetitive.
Alcoa shares fell 1.8 percent to $13.32 on the New York
Stock Exchange amid a general sell-off of mining shares.
(Reporting by Nicole Mordant in Vancouver and Cameron French in
Toronto; Editing by Bernard Orr and Paul Simao)