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Alcan makes final offer to Alma smelter workers

Tuesday, Dec 19, 2006
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MONTREAL, Dec 18 (Reuters) - Alcan Inc. said on Monday it had made its final contract offer to about 800 workers at its 400,000-tonne Alma smelter in Quebec in hopes of avoiding a strike that could begin in January.

Alcan spokesman Alexander Christen said Alcan, the world's second-largest maker of primary aluminum, wants the union, which is affiliated with the United Steelworkers, to reply to the company's "best and final offer" by the end of business Thursday.

"We're pushing for a renewal of the agreement that is already in place and they are pushing for a new contract, so we are hopeful they agree to the renewal," he said.

The Alma plant, located in Quebec's Saguenay region northeast of Montreal, has about 1,100 workers.

Christen said Alcan is developing a contingency plan in the event of a strike to deal with issues such as worker safety and production. He said it was too early to say whether the company would have to declare "force majeure" on supply contracts if the workers go on strike.

The two sides have been negotiating with the help of a conciliator.

Alcan, which wants the contract renewal to include a 5-year term, made its final offer on Sunday. The current contract ends Dec. 31.

Alcan shares were off C$1.56, or 2.7 percent, at C$55.94 on the Toronto Stock Exchange on Monday afternoon and down $1.42 at $48.45 on the New York Stock Exchange.

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