United Steelworkers reach tentative agreement with Arconic
May 15—MASSENA — Hours before their contract was set to expire, United Steelworkers officials had good news for their membership.
They had reached a tentative agreement on a new four-year master contract with Arconic.
"We've reached a Tentative Agreement w/Arconic that is fully endorsed by your bargaining committee. Thanks to everyone's solidarity and support, we achieved a fair deal!" officials said in a Saturday evening message to members.
The temporary agreement includes wage increases of 20.5% over the four-year period — 7% in year one and 4.5% in years two, three and four. There were no changes in health care, with health care premiums remaining the same.
It also improves pensions and includes the addition of Martin Luther King Jr. Day as a holiday. In addition, a $4,000 signing bonus will be paid out as $2,000 immediately after ratification, with the other $2,000 paid out in January 2023.
The contract covers roughly 3,400 workers in Massena; Davenport, Iowa; Alcoa, Tenn.; and Lafayette, Ind.
USW District 11 Director Emil Ramirez, who chaired the negotiations, said in a statement that the tentative agreement features substantial wage and benefit improvements for all Arconic employees.
"For their outstanding work throughout the pandemic and beyond, USW members have earned and deserve a fair agreement," he said. "The unity and solidarity of our membership across all of the Arconic locations enabled us to negotiate improved security for our earnings, benefits and jobs in this contract."
Arconic officials said they were pleased with the tentative agreement.
"We are pleased that Arconic and the United Steelworkers have reached a four-year tentative agreement. We believe this agreement accomplishes our goal of rewarding our employees for their commitment as essential workers while enabling our business to grow for future sustainability," they said in a statement.
Members of the USW committee will now return to their locals to discuss the terms of the proposed agreement with workers with the unanimous recommendation that it be ratified.
United Steelworkers and Arconic began contract negotiations on April 26. The three-year contract that was approved in 2019 was set to expire at noon on Sunday.
A day after 130 workers at Massena's Arconic plant unanimously authorized strike action against Arconic, union members stood outside the plant on Friday afternoon for a fair contract rally.
The strike authorization vote for Local 420-A was held from 6 a.m. to 8 p.m. Thursday at the union hall. United Steelworkers officials said they received unanimous support and record turnout for strike votes at all locations. The strike authorization would only be used if the union felt it couldn't reach what it called a fair and equitable contract.
The last strike at Alcoa was in 1986. United Steelworkers were set to strike again in 2010 as they awaited word of a last-minute contract with Alcoa. However, that never took place, as members across the country voted on June 24, 2010, to accept a four-year labor contract with Alcoa Inc.
Alcoa Inc. later split into two publicly traded companies — Alcoa Corp. and Arconic — meaning separate contract negotiations for the two companies.
While members of Local 420-A held their fair contract rally, contract negotiations with Arconic had been continuing in Pittsburgh.
The current contract provided annual general wage increases of 3.5% each year, which was applicable to all union members. It also maintained or improved existing benefits, such as supplemental unemployment and health care and retirement provisions for active employees. There was also a $1,750 ratification bonus.
