PITTSBURGH--(BUSINESS WIRE)--The formal consultation process regarding the San Ciprián aluminum plant in Spain officially ended on September 28, 2020, without an agreement with the workers’ representatives. Alcoa will now have up to 15 days to determine and announce a decision regarding the smelter’s 228,000 metric tons of annual capacity.
On August 13, 2020, Alcoa announced it had agreed to extend the formal consultation period for collective dismissal so the Company could consider a potential sale of the aluminum plant to GFG Alliance. After a comprehensive negotiation process, GFG Alliance and Alcoa did not agree on terms.
Per an agreed-upon timeline, if a sales agreement was not reached by September 27, 2020, Alcoa and the workers’ representatives would then meet for one day to agree on a social plan that would include government-supported unemployment benefits (ERTE) or the implementation of a permanent collective dismissal. On September 28, 2020, the workers’ representatives declined to agree on a social plan, and Alcoa has 15 days, per Spanish regulations, to make a decision.
On June 25, 2020, Alcoa began the formal consultation process to discuss a reorganization plan with the workers’ representatives. The plan, aimed at halting persistent and recurring financial losses at the aluminum plant, recommended curtailment of the smelter while keeping a portion of the site’s casthouse operational.
The alumina refinery at San Ciprián was not included in the consultation or the sales process.
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina, and aluminum products, and is built on a foundation of strong values and operating excellence dating back more than 130 years to the world-changing discovery that made aluminum an affordable and vital part of modern life. Since developing the aluminum industry, and throughout our history, our talented Alcoans have followed on with breakthrough innovations and best practices that have led to efficiency, safety, sustainability, and stronger communities wherever we operate. Visit us online on www.alcoa.com, follow @Alcoa on Twitter, and on Facebook at www.facebook.com/Alcoa.
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