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Alcoa-Reynolds contracts.

Alcoa-Reynolds contracts

In similar settlements, the Aluminum Co. of America and Reynolds Metals Co. gained some labor cost reductions from the United Steelworkers and the Aluminum, Brick and Glass Workers, but the reductions were less than that negotiated last year by Kaiser Aluminum and Chemicals Corp. (See Monthly Labor Review, June 1985, p. 50.)

The new Alcoa-Reynolds contracts provide for a 95-cent-an-hour reduction in labor compensation, which reportedly totaled about $24, including $13 in pay. Both unions agreed to eliminate extended vacations--10 weeks of paid time off employees had received once every 7 years instead of the regular annual vacation for that year. (Employees will be paid for the amount of time off they had accrued at the time of termination.) The unions also agreed to eliminate vacation bonuses--amounts ranging from $30 to $112.50 per week (varying by the time of year when vacation is taken) added to regular vacation pay as an inducement to vacation at times other than the traditional summer months. (This provision had been suspended during the final 2 years of the 1983 contracts.)

The balance of the 95-cent reduction was attained differently by the two unions. For employees represented by the Steelworkers, changes included reducing the existing cost-of-living pay allowance to 32.6 cents, from 63 cents. For employees represented by the Aluminum Workers, only 2.4 cents was cut from the 56-cent cost-of-living allowance, but they gave up a $700 annual allocation from the company that had been used to cover their health insurance deductible and co-insurance payments, with any unused portion of the $700 paid to them at yearend.

There was no provision for specified wage increases, but both contracts provided for the continuation of quarterly cost-of-living adjustments, calculated at 1-cent-an-hour for each 0.3-index point rise in the BLS CPI-W (1967=100) in excess of 3 percent a year. Previously, the calculation rate was 1 cent for each 0.26-point rise in excess of 2.3 percent a year for the Aluminum Workers and in excess of 1.5 percent a year for the Steelworkers.

All four agreements provide for joint committees to consider the possibility of establishing profit-sharing plans.

The Aluminum Workers represent 8,000 workers at Alcoa and 6,000 at Reynolds, and the Steelworkers represent 7,000 at Alcoa and 3,600 at Reynolds. The unions, which coordinated their bargaining, began a walkout on June 1, but limited it to Alcoa because of the company's "belligerent attitude' and because it is the "major company in the industry,' according to a Steelworkers official. Members of both unions began returning to work after a tentative settlement on July 2. In Massena, NY, and Warrick, IN, 3,500 Aluminum Workers stayed out longer over local issues.
COPYRIGHT 1986 U.S. Bureau of Labor Statistics
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Title Annotation:Aluminum Company of America, Reynolds Metals Co., collective labor agreements
Publication:Monthly Labor Review
Date:Sep 1, 1986
Previous Article:Strike against Weyerhaeuser ends.
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