Alcoa, United Steelworkers off to a rough start on contract talks

Bob Beckstead, Watertown Daily Times, N.Y.
·3 min read

Mar. 31—MASSENA — It's back to the negotiating table as Alcoa and United Steelworkers try to hammer out a new contract.

It's not going well so far, United Steelworkers officials said this week.

"The company's initial wage offer falls short of what we deserve. They're holding a proposed one-time lump sum bonus hostage to try to force us to accept wages and benefits changes that would impact us for years to come," they said in a message to membership.

Negotiations between Alcoa and the union's bargaining committee began in January and were most recently held from March 20 to 22.

"Unfortunately, talks broke off with Alcoa continuing to insist on proposals that fall far short of what we deserve," USW officials said. "The company proposed unacceptable low wage increases, to eliminate retiree life insurance, and they are refusing to increase any of the pension plans that are in place today."

They said both parties tentatively agreed to a lump sum payment of $4,000.

"But the company is holding the lump sum payment hostage in an effort to try to convince the union to accept their unacceptable economic and non-economic proposals by April 1, 2023. Otherwise, they say, the tentatively agreed to lump sum payment will be off the table," officials said.

They said the union "refuses to accept these sub-par wage increases and cuts to benefits that would impact you and your families to come."

"Our union did not agree to go into early negotiations in order to bargain a concessionary labor agreement, including issues like healthcare premium increases and plan design changes, which the union did successfully fight off so far. We deserve better! We need to be united as one and stand strong to win the contract we deserve!" union officials said.

In an emailed statement, Alcoa officials said they are working together to reach an agreeable settlement.

"Alcoa and USW started negotiations in January for a new collective bargaining agreement, and we are working to reach a new one before the expiration on May 15, 2023," they said.

Following a day of voting, members of United Steelworkers voted overwhelmingly in September 2019 to ratify a new four-year master contract with Alcoa.

The agreement covered about 357 Local 420-A employees in Massena, and about 1,600 production and maintenance workers at four other Alcoa facilities in the United States — Local 104 at Alcoa's Warrick, Indiana, facility; Local 5073 at Gum Springs, Arkansas; Local 4370 at Point Comfort, Texas; and Local 310A in Wenatchee, Washington.

Under the master contract, members received annual wage increases of more than 12% over the term of the agreement, and maintained what United Steelworkers officials said was "high-quality, affordable health care coverage." The new contract runs through May 15, 2023, and was the first since Alcoa split into two companies in November 2016.

The vote came about three weeks after the union reached a tentative agreement with Alcoa. Negotiating committee delegates returned to their local unions to conduct membership meetings and arrange the ratification votes.

United Steelworkers officials had recommended that their membership ratify the tentative agreement, which was announced on Aug. 30, 2019.

Alcoa employees in Massena had continued working under the terms and conditions of a contract that expired May 15, 2019. Negotiations broke off hours before the contracts were set to expire, and the negotiating committee and Alcoa agreed to extend the contract while negotiations proceeded, subject to termination with written notice by either party. As talks continued, workers voted to authorize the United Steelworkers bargaining committee to call a strike if necessary.