[news] Workers Sieze Alcan Smelter in Quebec

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Alcan CEO calls on unionized workers to open dialogue over seized plant

DAVID PADDON
Canadian Press


Monday, February 02, 2004

Alcan president Travis Engen at a news conference in Montreal on April 24,
2003. (CP/Paul Chiasson)

CREDIT: (CP/Paul Chiasson)

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TORONTO (CP) - The head of Alcan Inc. said Monday he's concerned about
safety at one of the company's Quebec aluminum smelters, which has been
taken over by unionized workers.

"You have to remember these are facilities that use very, very high levels
of power, millions of amperes of electricity, molten metal," Travis Engen
said after a speech to a Toronto business lunch.

While the unionized workers have done well operating the smelter at
Jonquiere, Que., on their own since taking it over last week to protest
plans to close it this spring, affecting 550 jobs, Alcan management is
still responsible for the facility, he said.

"We're quite concerned about the potential for something which might breach
our health-and-safety standards," Engen said.

But he added the company hasn't given any deadline to the workers, who are
represented by an affiliate of the Canadian Auto Workers union.

"There will be some limits, obviously, because there are some raw materials
required to produce aluminum. I would image the stocks of raw materials
that are at hand are falling. But there's no deadline," Engen said.

Quebec's Labour Relations Board ruled late Friday that the workers' actions
were illegal. On Saturday, thousands of people demonstrated against plans
to close the plant 10 years earlier than expected.

Engen said the 60-year-old smelter, which had been slated to close in 2014
because its technology doesn't meet more stringent environmental standards,
is being closed earlier because of the age of its workforce.

"We've been trying to find the right moment in time when, because of the
natural evolution of the employment, that we'd have enough retirements to
more than offset the job reductions so that people could be transferred and
there would not be any layoffs," Engen said.

Alcan had been in discussions with union representatives before the
company's announcement Jan. 22 that it plans to close the facility. But the
workers' representatives have been unwilling to talk since then, he said.

"We remain open, interested, available. And would welcome whatever steps
could be taken to open up a dialogue," Engen told reporters.

Alcan had started the closure process, which requires several weeks. But
Rolland Poirier, the union local's general secretary, said in an interview
the workers took over the plant last Tuesday "and stopped the closure
process."

Poirier said Monday the mill's foremen are making inspections at the mill,
which still runs 24 hours a day, "but the operating decisions are being
made by the operators."

The last of the four potlines was to be closed at the start of April,
Poirier said. He added that the Quebec government has named a mediator to
try to resolve the dispute.

Although Alcan is rationalizing its global operations since the acquisition
of Pechiney SA of France in December, Engen said the closure of the
Jonquiere smelter was due to its aging technology and desire to avoid
layoffs.

But Engen said he does expect layoffs will result from its takeover of
Pechiney, particularly some of the functions at its Paris headquarters.

Montreal-based Alcan (TSX:AL) is the world's largest aluminum producer by
revenue after its recent takeover of Pechiney, completed last month for
$6.3 billion.

© Copyright 2004 The Canadian Press