Canada unions seek security in Rio Tinto-Alcan deal
Monday, Jul 16, 2007
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MONTREAL - Rio Tinto's 38.1 billion-dollar buy of aluminum giant Alcan prompted worries among unionists who on Friday wanted Canada's Conservative government to gin up some job security.
Canadian Auto Workers union President Buzz Hargrove demanded Prime Minister Stephen Harper's Conservative government meet obligations to workers and communities in the case of foreign takeovers.
"The Harper government is presiding over the largest-ever foreign takeover on Canadian soil," said Hargrove.
"So far, it has failed to ensure that workers' jobs will be protected and investment of Canadian tax dollars will not leave our country.
"Workers and their communities must not be made to pay for government inaction on this matter."
Hargrove, whose union backed Liberals in the most recent election, said the Conservative government is obliged to review the impact of the proposed takeover and get binding commitments that protect workers, as did Canadian Auto Workers director in Quebec, Luc Desnoyers.
"In this kind of transaction, our jobs, our natural resources and our investments that have already been announced must be protected," Desnoyers said.
Alcan assured the union that the deal will not derail investments planned in Quebec and British Columbia or move headquarters from Montreal.
The CAW represents 5,000 at Alcan's operations in Quebec and British Columbia. Like Alcan, which broke off from its US parent, Alcoa, CAW broke with the US United Auto Workers.
Anglo-Australian miner Rio Tinto cut the deal on Thursday to become the world's largest aluminum company, to be called Rio Tinto Alcan, in the biggest-ever acquisition in the world mining and metals sector, assuming the deal is approved by regulators.