ALCOA-Reynolds Contracts

Monthly Labor Review, September 1986 | Go to article overview

ALCOA-Reynolds Contracts


Alcoa-Reynolds contracts

In similar settlements, the Aluminum Co. of America and Reynolds Metals Co. gained some labor cost reductions from the United Steelworkers and the Aluminum, Brick and Glass Workers, but the reductions were less than that negotiated last year by Kaiser Aluminum and Chemicals Corp. (See Monthly Labor Review, June 1985, p. 50.)

The new Alcoa-Reynolds contracts provide for a 95-cent-an-hour reduction in labor compensation, which reportedly totaled about $24, including $13 in pay. Both unions agreed to eliminate extended vacations--10 weeks of paid time off employees had received once every 7 years instead of the regular annual vacation for that year. (Employees will be paid for the amount of time off they had accrued at the time of termination.) The unions also agreed to eliminate vacation bonuses--amounts ranging from $30 to $112.50 per week (varying by the time of year when vacation is taken) added to regular vacation pay as an inducement to vacation at times other than the traditional summer months. (This provision had been suspended during the final 2 years of the 1983 contracts.)

The balance of the 95-cent reduction was attained differently by the two unions. For employees represented by the Steelworkers, changes included reducing the existing cost-of-living pay allowance to 32.6 cents, from 63 cents. For employees represented by the Aluminum Workers, only 2. …

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