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First key condition met for US$1.8 billion Kitimat Works
Modernization Project
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KITIMAT, BC, May 3 /CNW Telbec/ - Alcan announced today that employees at
its Kitimat operations in northwest British Columbia have ratified a new
five-year Collective Labour Agreement (CLA). More than 61% of the hourly
workers represented by the Canadian Auto Workers (CAW) Local 2301 voted to
ratify the new CLA.
"Alcan is very pleased with the outcome of the vote. It is a clear
demonstration that the parties are determined to work together toward common
objectives, including the modernization of the Kitimat smelter. We are pleased
to have reached this agreement within such a short time period. I would like
to commend the union and management negotiating teams for this significant
accomplishment," said Jean Simon, President, North America, Alcan Primary
Metal Group.
The new labour contract takes effect today and runs through to July 23,
2012.
"This agreement brings us one step closer to securing the future of the
aluminum business in British Columbia," said Paul Henning, Managing Director,
Kitimat Project and Operations. "The modernization of the smelter would mean
that one of B.C.'s largest private construction projects would take place
right here in the Kitimat Terrace area."
A long-term competitive labour contract was one of three conditions set
by Alcan when the modernization project was first announced in August 2006.
Intended to ensure stability in labour relations during construction and
ramp-up of the project, it also demonstrates strong support from the
community, critical to the final go-ahead of the Kitimat Works Modernization
Project. Steady progress has been made on the other two key conditions:
obtaining the necessary environmental permits and a new long-term energy
agreement.
Following a commitment made by Michel Jacques, President and CEO, Alcan
Primary Metal Group, when he met with union representatives in Kitimat four
weeks ago, Alcan will now proceed with the project's preparations. They
include, for example, Engineering Procurement Construction Management (EPCM)
contracting, preliminary engineering and soil analysis, while continuing to
work on the two other conditions.
The agreement provides for a competitive wage increase of 2.5% per year
to the basic hourly rate, significant improvements in monetary and
non-monetary packages, and a signing bonus of CAD$2,300 per active member. The
new CLA also includes provisions for a smooth transition from the old to the
new technology.
CAW Local 2301 at Alcan in Kitimat represents approximately
1,300 production and maintenance workers.
The Kitimat smelter currently produces 243,000 tonnes of aluminum yearly
and employs approximately 1,500 people. Today, Alcan has a global smelting
capacity of 3.5 million tonnes per year, represented by the Company's network
of 22 smelters in 11 countries.
Alcan Inc. (NYSE, TSX: AL) is a leading global materials company,
delivering high quality products and services worldwide. With world-class
technology and operations in bauxite mining, alumina processing, primary metal
smelting, power generation, aluminum fabrication, engineered solutions as well
as flexible and specialty packaging today's Alcan is well positioned to meet
and exceed its customers' needs. Alcan is represented by 68,000 employees,
including its joint-ventures, in 61 countries and regions, and posted revenues
of US$23.6 billion in 2006. The Company has featured on the Dow Jones
Sustainability World Index consecutively since 2003. For more information,
please visit: www.alcan.com.
Statements made in this press release which describe the Company or
management's objectives, projections, estimates, expectations or predictions
may be "forward-looking statements" within the meaning of securities laws. The
Company cautions that, by their nature, forward-looking statements involve
risk and uncertainty and that the Company's actual actions or results could
differ materially from those expressed or implied in such forward-looking
statements or could affect the extent to which a particular projection is
realized. Reference should be made to the Company's most recent Quarterly
Report on Form 10-Q or Annual Report on Form 10-K for a list of factors that
could cause such differences.
%B NM %C 1,3 %D Kitimat Labour Agreement
For further information: Media Contact: Anik Michaud, +1-514-848-8151,
media.relations@alcan.com;
Investor Contact: Ulf Quellmann, +1-514-848-8508,
investor.relations@alcan.com
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