Alcoa offers to invest 103 million in San Ciprián if they let it close now

Alcoa has presented its final proposal to the Works Council. The American company raises an investment commitment of 103 million dollars to protect the employment of workers and contractors. To this end, it includes a commitment to restart the electrolysis tanks after a two-year shutdown, and as a guarantee it undertakes to establish a restricted deposit for the same amount.

During the period of cessation of electrolysis activity, Alcoa will work to secure long-term power purchase agreements and make new investments in the plant. Those investments would include improvements to the main electrical substation, the anode plant and the smelting furnaces. Such investments would increase production capacities and the quality of value-added products, such as aluminum extrusion billet.

In addition, the Company undertakes to maintain salaries during the electrolysis cessation period and to sign a new collective agreement with salary increases of 2% per year from 2020 and valid until the end of 2025, as well as other social benefits and the commitment to hire a number of temporary agency workers. The Company also undertakes not to carry out any employment regulation process in the next four years.

Alcoa is also willing to extend the current contracts of the contracting companies directly affected by the temporary cessation of the electrolysis and anode plant for three years. Likewise, it will prioritize the hiring of transport companies and local supplies.

If the proposal is accepted, once the orderly cessation of the electrolysis and anode plant activity has been carried out, employees will be able to carry out other tasks and participate in training plans, or access paid leave for limited periods. The smelter will continue to operate to ensure the supply of metal to customers.

The proposal is conditional on calling off the current strike and a follow-up commission will be set up with representatives of the workers from the central and regional governments.

The company’s proposal contemplates that the agreement be signed by the parties urgently and before 2:00 p.m. on December 28, 2021.

The San Ciprián aluminum plant is operating with financial losses from exorbitant energy prices.