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Alcoa Launches Informal Consultation Process with San Ciprián Works Council

Publish Date:

Thursday, May 28, 2020

MADRID, May 28th, 2020 –  Alcoa today met with the San Ciprian Works Council to inform the workers’ representatives of significant and unsustainable circumstances at the aluminum plant, due to inherent structural issues and ongoing challenges. These conditions have led Alcoa to contemplate the start of a collective dismissal process that could potentially affect up to 534 employees.

Given the potential impact on employees, the Company proposed opening an informal consultation period with the Works Council that will last approximately three weeks to explain the financial situation of the plant, the challenges it faces and to discuss alternatives and measures. The goal of the informal consultation is to make progress with the workers’ representatives before initiating a formal consultation period, which has specific timelines.

No decisions will be made until consultations are concluded.

The plant faces a series of external production and market issues that have rendered primary aluminum production inefficient and operation of the plant uncompetitive. Those structural issues include high energy costs and depressed aluminum prices. Coupled with global overcapacity, those issues have caused significant recurring financial losses, which are expected to continue.

The European Workers’ Council has been informed of the informal consultation through a meeting held this morning.

The San Ciprian site has both an aluminum plant and alumina refinery, employing 633 and 510 people respectively. The planned restructuring at the aluminum plant envisions operating a portion of the casthouse, and the production at the San Ciprián alumina refinery is not affected by this informal consultation process.