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Alcoa Launches Formal Consultation Process with Avilés and La Coruña Works Councils

Wednesday, October 17, 2018 11:06 am EDT

Alcoa today announced its intention to begin a formal consultation process for collective dismissals that would affect all employees at its Avilés and La Coruña aluminum plants, which are the least productive within the Alcoa system due to their inherent structural issues. Aviles employs 317 employees and La Coruña 369.

Per Spanish law, Alcoa will initiate a mandatory 30-day consultation period with the workers’ representatives to achieve the best possible outcome for the Company and its workforce.

Alcoa is committed to minimizing the impact of any outcomes on employees and will negotiate a social plan with the works councils. The Company is aware of the social and human impact of this announcement and will work with employee representatives to reach the best agreement for both parties.

Structural issues at the Avilés and La Coruña plants include small production capacity, less efficient technology and high fixed costs. Those structural issues, combined with external market factors, including Chinese aluminum smelting overcapacity, as well as high raw materials and energy costs, have caused significant financial losses at the two plants over the past two years, which are expected to continue.

In an attempt to overcome these adverse conditions, over the years, Alcoa has made significant efforts to reduce costs at the Avilés and La Coruña plants to maintain jobs. However, because of their older and less efficient technology, scale and other factors, the plants remain uncompetitive.

An analysis of Alcoa’s operations in Spain found that organizational improvements could be achieved if the Company ceased production at its Avilés and La Coruña facilities and reorganized production at a single plant in San Ciprián, which produces both alumina and aluminum.

Smelting capacity at Avilés and La Coruña is 93,000 and 87,000 metric tons per year, respectively.

About Alcoa
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina, and aluminum products, and is built on a foundation of strong values and operating excellence dating back nearly 130 years to the world-changing discovery that made aluminum an affordable and vital part of modern life. Since developing the aluminum industry, and throughout our history, our talented Alcoans have followed on with breakthrough innovations and best practices that have led to efficiency, safety, sustainability, and stronger communities wherever we operate. Visit us online on, follow @Alcoa on Twitter, and on Facebook at

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