Decrease in aluminum prices affects Sherwin Alumina's negotiations
GREGORY, TEXAS – A recent dip in commodity prices for aluminum has impacted Sherwin Alumina, which is affecting the company’s bargaining process with locked-out workers.
Sherwin officials met with United Steelworkers representatives last Thursday to revisit contract negotiations with locked-out workers, but the parties were unable to come to terms. The parties have been attempting to construct a new contract since July 8, 2014 – after the previous contract between the company and its workers expired Sept. 30, 2014 – and 450 workers remain locked out of the facility.
A statement released by Sherwin representatives states that there has been a free fall in all commodity prices – but aluminum and alumina have been amongst the most heavily impacted – since bargaining began in 2014, with the selling price of aluminum dropping to $17 per ton, which constitutes the lowest price since the 2009 financial crisis. The drop has rendered the company’s current 64 percent benefits load for its USW-represented hourly workforce unsustainable, according to the statement.
“Every group that contributes to our cost structure must pitch in and help – including the hourly workers,” Sherwin negotiators said in the statement. “We have to establish a cost structure that makes the plant competitive immediately. Our previous goals of moderating growth in costs is no longer valid; we must make immediate and significant changes to our costs in order to compete.”
Read more: http://mysoutex.com/view/full_story_sanpat_free/27001255/article-Decrease-in-aluminum-prices-affects-Sherwin-s-negotiations?instance=sanpat_news
Cross-posted in the Texas Group.
