Alcan unveiling labour deal for B.C. smelter

28, Aug--Rio Tinto Alcan is expected to unveil today a no-strike, no-lockout deal with B.C. unions that could lay the foundation for a massive upgrading of its decades-old aluminum smelter in Kitimat, B.C. The labour agreeement would expedite a $2.5 billion modernization project at the smelter in northern British Columbia. Critics have been quick to point out that the announcement is not the final decision to proceed with the project in the northwestern B.C. community, which has been waiting for some good economic news after years of declining population and worries over the future of the smelter. Rio Tinto Alcan said the announcement will highlight a labour agreement with unions, global construction company Bechtel Corp., and area aboriginals that brings the Kitimat project steps closer to reality. A B.C. union spokesman said the deal involves the no-strike, no-lockout clauses and agreements to hire local and aboriginal workers. The spokesman also suggested that in October, Rio Tinto Alcan's board of governors may announce an actual start date. "Nothing's 100 per cent sure and you never know what's going to happen in that world, but everything that we have done has led towards that,'' said Wayne Peppard, executive director of the B.C. and Yukon Territory Building and Construction Trades Council. "A couple of months ago, they (Rio Tinto Alcan) released the preliminary funds to prepare the site and get started under the terms of the agreement that we had not yet signed off on,'' he said. "So, that's a pretty clear indication that things are rolling.'' On Tuesday Peppard said he expects the project to create 1,500 construction jobs at its peak. The project completion date is December 2011, he said. Rio Tinto Alcan officials could not be reached for comment. Residents of Kitimat, located about 600 kilometres northwest of Vancouver, have been waiting more than a decade for a smelter announcement after a 1997 project was cancelled. Kitimat, which was built in the early 1950s to accommodate the aluminum smelter ,has been locked in a divisive legal battle with Alcan over its ability to sell hydro power it generates as part of its smelter operations. At its peak in 1974, Alcan employed 2,730 people. The company now employs about 1,600 people in the Kitimat area. When the modernization project is done, it will mean 500 fewer jobs. Recent census statistics gave Kitimat the dubious distinction of posting the largest population decline of any community in Canada. From 2001 to 2006, Kitimat's population dropped 12.6 per cent, from 10,285 to 8,987. In 1982, Kitimat's population was almost 13,500. "This is a big step forward for Kitimat,'' said businessman Tony Deni. "We look forward to the implementation of this strategy. This is the beginning of a new era for the northwest.'' But Kitimat civic officials will not be attending the Vancouver announcement. "We're kind of persona non grata,'' said Kitimat city administrator Trafford Hall. Alcan had been allowed to build a hydro-electric facility originally to power the plant. But when the company began selling excess power, Kitimat launched legal battles, saying the original development agreement with the government that allowed the company to use provincial water resources only applied to generating power to make aluminum, not for selling power while shedding local smelter jobs. Kitimat lost that battle in court. "The fear of trading this water resource for jobs was that Alcan would just forgo the jobs and sell the power,'' said Hall. "That's exactly what happened. We tried to stop that. We weren't able. We didn't stop it.'' He said the community wants to move past its battle with its largest employer. Source: The Canadian Press