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 companys 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 companys 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 Our previous goals of moderating growth in costs is no longer valid; we must make immediate and significant changes to our costs in order to compete.
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Cross-posted in the Omaha Steve's Labor Group.