Aluminum giant Rio Tinto Alcan is studying options, including whether to seek the reopening of collective agreements, as it moves to reduce costs over the next year to offset the challenges of a tough global market.
The Montreal-based aluminum division has provided cost reduction targets to each of its facilities around the world, but won't release them publicly. "We really have to reduce plant costs so they are more competitive and able to survive the current crisis," said spokeswoman Claudine Gagnon.
Rio Tinto Alcan met with Canadian Auto Workers union representatives to discuss employee concerns about the weak global aluminum market, cost-reduction efforts and the planned closure this year of its cathode facility in Arvida, Que. About 50 employees affected by the closure will be relocated to other facilities.
The talks followed a general meeting of union employees 10 days ago.
Gagnon said Rio's facilities in Quebec and elsewhere around the world have to reduce costs. The Arvida facility also faces an additional challenge because it will no longer meet Quebec's environmental standards as of 2015.
She said the company hasn't made any decisions about seeking the reopening of some collective agreements.
