ABI's locked-out workers planning a counter-proposal to restart negotiations and end conflict

A resolution of the ongoing labor dispute would lead to the restart of as much as 350 kmtpy primary aluminum capacity.

Unionized workers from ABI's smelter will file a counter-proposal to Alcoa. According to a reported statement from the president of the union members, the counter-proposal would cover every matter included in the collective agreement but it will not be filed this week. The intention is to resume negotiations after the union rejected Alcoa's latest offer on Monday.

Additionally, a return-to-work protocol may also be negotiated. Reports indicate that Alcoa's latest offer proposed a return-to-work protocol spanned for ten months, beginning in early April.

An agreement between the two parties will end the ongoing lockout and would lead to the restart primary aluminum capacity at the smelter. The Becancour smelter in Canada has about 350 kmtpy of idled capacity (over 80% of its nameplate capacity) as a result of the ongoing lockout that began in January of 2018 after unionized employees rejected a labor-contract offer.

ABI is jointly owned by Alcoa (74.95%) and Rio Tinto (25.05%) and produced 136 kmton of primary aluminum in 2018, down 69% y/y due to the lockout's impact.