April 24, 2012 - No. 59
Rio Tinto Alcan's Phony Government
Subsidized Lockout
Smash Rio Tinto's Arrogance!
Unlimited Subcontracting, No!
Guaranteed Union Jobs for the Region, Yes!
Militant contingent of
150 Alma workers were a bold presence amongst the quarter million
people
at Earth Day in Montreal, April 22, 2012.
Rio
Tinto
Alcan's
Phony
Government
Subsidized
Lockout
• Smash Rio Tinto's Arrogance! Unlimited
Subcontracting, No! Guaranteed Union Jobs for the Region, Yes!
A
Fitting Reply to Rio Tinto's Threats
•
Énergie électrique Workers
Give $25 a Week to
Support Alma Workers
Locked-Out Alma
Workers Continue to Raise International Support
• Second Phase of International Tour
• Protest at Rio Tinto Shareholders' Meeting
in London, England
• Interview - Marc Maltais,
President, Syndicat des travailleurs
de l'aluminium d'Alma
• Rio Tinto's Conflicts with Workers
and Communities in England and France - Pierre
Chénier
Rio Tinto Alcan's Phony Government
Subsidized Lockout
Smash Rio Tinto's Arrogance!
Unlimited Subcontracting, No!
Guaranteed Union Jobs for the Region, Yes!
Rio Tinto's arrogance knows no bounds. The company is
thoroughly exposed in Alma, in Quebec, across Canada and around the
world as a self-serving behemoth which gets electricity for free, rapes
the land and labour wherever it operates and devastates the communities
left in its wake. It does
not give a damn about its workers who create all the wealth for Rio
Tinto Alcan. But when it comes to crying about "needing" to remain
competitive, or threatening countries that it is going to pull up
stakes if governments do not give more concessions on power and other
demands, it has crocodile
tears to spare. At the Shareholders' meeting in London, England on
April 19, CEO Tom Albanese refused to permit Alma union president Marc
Maltais to speak, or the representatives of the community who had
traveled all the way from Utah, USA, or the representatives of the
super ill-treated
workers who traveled all the way from Papua New Guinea and the Oyu
Tolgoi copper and gold mine in Mongolia. In his arrogance, Albanese
repeated the litany that Rio Tinto has very good labour relations
everywhere (except in Alma), which is an outright fabrication. (Way to
Go, Alma!)
Now the company is isolated
and exposed. It is even
faced with 250,000 people in Quebec who agree with the Alma workers
that the resources belong to the people and the people should get to
decide what happens to them. Under these circumstances, Albanese and
Rio Tinto Alcan's CEO
Jacynthe Côté are making noises that they are willing to
return to
the bargaining table soon. A settlement is possible providing the talks
are "reasonable," they were quoted in media reports.
Does this mean they are going to be reasonable, the
workers want to know? Workers' demands have been reasonable since the
get
go. In fact, their only demand is that the jobs which create the wealth
should be protected union jobs, not open to subcontracting. The
company's
position is to guarantee
current jobs, but not those lost through attrition. All those jobs,
which means all future jobs, it wants to subcontract, which means at
first two-tier wages, two-tier working conditions, and then nothing but
low wages and unprotected working conditions. In other words, Rio Tinto
Alcan wants unfettered
monopoly right, unfettered so-called management rights and this is not
reasonable at all. To even apply the word reasonable to this demand is
irrational.
"Charest, you and
your
corrupt gang get out!"
|
Of course, the company sees nothing but dollar signs in
front of its eyes, not people with hearts and minds and the tremendous
talent it takes to produce, innovate and move forward by opening a path
for society to move forward. To the way of thinking of the working
people, proposals to go
back to feudal times when workers were serfs and indentured labour, and
had to pay tithes to the church as well as to the government, and
local authorities dictated what they were and were not allowed to do,
calling them sinners if they dared to express a thought of their own --
those days are
gone. We don't know what world Tom Albanese and Jacynthe
Côté think they live in, or Jean Charest and Stephen
Harper, but it is not a desirable world; it is not a sustainable world;
it is not the world which represents the interests of the people of
Quebec or Canada or anywhere else. The workers
and their families not only in Alma, Quebec, not only in all of Quebec
and all of Canada, but all over the world, are very clear about this!
The last time the Alma union and Rio Tinto Alcan spoke
was on April 6 and the company negotiators walked out after just a
little more than one hour. Even though there was an agreement not to
speak to the media during negotiations, they started spouting
accusations against the union. Like
crazy people who do not know the meaning of words, they accused the
union of using blackmail and committing aggression against the monopoly
with its demands to restrict subcontracting and guarantee minimum
levels of employment. At that time RTA's head negotiator said no
bargaining would
take place for the foreseeable future.
This show of frustration and expression of arrogance and
craziness did not win the company any favour. Despite this, the Rio
Tinto executives now say they want to have talks with the Alma union
once again. They have not learned that it is they who are in the
wrong, not the union. Very
well. But will they stop repeating all the lies and disinformation they
have been throwing at the workers to deny RTA's responsibility to
negotiate in good faith? We hope so.
The Rio Tinto executives have a great self-image which
may sound fine in the boardrooms where they vie for
position with others of like kind, but it does not look very good "on
the ground." They huff and puff that they are "wise" and "reasonable"
and "know what is happening
in the world" and "only have the best interests of the workers in
mind." They portray the workers as country bumpkins who know nothing of
what is happening in the world or what's good for them! They claim the
company is reasonable because it came to these negotiations with no new
demands
and would gladly live with basically the same contract and that it is
just the workers' intransigence on the issue of subcontracting that
blocks a settlement.
The truth of the matter is that some things that were
not an issue in the prior period have now become a big issue and the
workers need to defend their interests. Rio Tinto Alcan does not need
to make new demands in the contract for subcontracting because every
day the company acts with
impunity and dictates the working conditions on the shop floor.
Maintenance jobs in anode production, electrolysis and metal casting,
jobs at the potlines maintenance centre and in the office are routinely
being transformed from union jobs with protections won over decades of
struggles, to precarious
contracted-out non-union jobs with radically inferior conditions. It
has been very difficult for the union to restrict this regressive
transformation of jobs at the plant because of the understanding which
informs the labour code, and thus all labour contracts, that anything
that is not tied down with contract
language is a "management right."
It is therefore reasonable for the union to use the
occasion of the renewal of the contract to introduce contract language
which restricts RTA's ability to change working conditions with
impunity and restrict its so-called management rights. It is not only
reasonable but imperative that the union
do so. At this time, the company is on a declared mission to lower
wages and deprive the workers of union protection under the
capital-centred hoax that workers are "costs" of production. It says
these "costs" must be eliminated in order to improve the company's rate
of return. In other words the
company's raison d'etre is to benefit its private
shareholders, not the common good, which is fine but that is not the raison
d'etre of the workers. Their private interests are not in
contradiction with the common good but in fact make the common good
possible. Besides this,
by negotiations it is understood that a mutually beneficial arrangement
must be the aim. The workers want to work, but not as slaves! If the
company thinks it can produce wealth for the private interests it
represents with slave labour, then it is living in Lalaland.
The company knows very well that its logic is not
"reasonable" but in fact irrational. Workers produce the wealth; they
are not "costs of production." The fact that we all depend on society
to meet our needs, means that it also stands to reason that we should
all be
socially responsible towards that society,
towards how it is organized and how we use our resources and spend the
common wealth we all create. Just as the members of society are not
liabilities to that society but its very raison d'etre, so
too workers are not liabilities for companies but their greatest
assets. Take the example of a
family. Does a family not consider its children to be its greatest
assets? Of course it does. Imagine looking at them as burdens and
declaring that the family will thrive if it gets rid of the family
members! Would one even consider it "reasonable" to have such a
discussion? Of course not. Why then
does Rio Tinto Alcan fancy that it can spout nonsense about being
"reasonable" when it refuses to provide its workers with secure
conditions of work and life?
The issue in these negotiations is the same as it is
today all across the country and the world. The company must stop its
arrogant repetition of idiocy and settle down to negotiate in good
faith. The workers' demands in these negotiations reflect their direct
experience with Rio Tinto's attempts
to act with impunity. It is not reasonable for a company to think it
can act with impunity. It must negotiate the conditions under which it
is reasonable for the workers to work.
Because the company cannot justify its position on
reasonable grounds, it resorts to name calling. It calls the workers'
opposition to unfettered management rights on the issue of
subcontracting "unrealistic," "job killer," "rigid," something that
does
not exist and cannot exist anywhere. The company
will not even permit a rational discussion on the workers' proposal for
a flexible arrangement that establishes a ratio between the number of
workers in the bargaining unit and the production output in terms of
tonnage of aluminum produced in a year. The company distorts the
content of the demand
claiming, for example, that the workers want the company to guarantee
900 jobs even though there are only 778 union members. The union's real
demand is to recover for its members the jobs lost to subcontracting
and provide them with the same working conditions the other workers
have.
Rio Tinto Alcan's claim that granting a minimum level of
employment is impossible under neoliberal globalization is an
admission that the capital-centred anti-human system it espouses does
not work and that another system is necessary. Refusal to recognize the
human factor/social consciousness is not an option. But the company's
aim is to divert attention from its
Achilles Heel, the fact that it makes its superprofits because of the
hydro privileges and now it wants to make even more by converting the
workers into enslaved labour.
The fact is that the
workers have hit the nail on the
head with their banner which points out that this phony lockout is
subsidized by the government. Their argument that in return for hydro
privileges, RTA must at the very least provide minimum employment
levels with decent conditions, merits attention.
This is what the people of the entire region asked the Charest
government to do when it allowed Rio Tinto to seize control of Alcan in
2007. But this government refused to do that. Instead it signed a
secret
deal with Rio Tinto and Hydro Quebec that hands over the people's
hydroelectricity to the monopoly,
even allowing it to organize a phony lockout so as to declare a phony force
majeure and make money from the sale of hydro while aluminum
prices are pushed up.
Rio Tinto, the Charest government and the
monopoly-controlled media present the workers' demands as unrealistic.
They claim that as a result of neoliberal globalization, the people's
demand for sovereignty over their resources, way of life, culture and
traditions, is finished. Today the law
of the jungle must prevail and that is the end of the story,
they say. The workers "have no choice" but to buckle under.
But 250,000 Quebeckers this
weekend said No! Our
Resources, Our Decision! The demand for minimum levels of
employment is not only an economic demand to protect livelihoods and
working conditions. It is not only a very just economic demand in
itself; it is also a political demand directed at global monopolies and
governments. The monopolies which operate in Quebec must abide by
strict conditions whereby private monopoly interest must be subordinate
to the public interest. This is the case
for everyone else's private interests -- why not those of the
monopolies?
The Charest government
will not answer this question. It arrogantly says there is nothing it
can do. When it comes to the youth, it simply sanctions police violence
and calls people names.
The monopolies cannot be allowed to use the people's
resources unless they meet their social responsibilities enforced by
governments. Rio Tinto Alcan workers are firm in their resolve not to
let the company and the Charest government get away with their
anti-social agenda.
RTA should restart the negotiations and it should
negotiate the Alma union's proposal in good faith. The demand for the
government of Quebec to stop subsidizing this phony lockout is more
urgent than ever. It is quite possible the illegitimate secret deal is
illegal. It is certainly an act of great irresponsibility for the
government to declare that when the secret deal was negotiated it did
not consider the possibility of a lockout. Well, the company did which
is why it is written there. It is quite possible it can be proven in
court that the company planned the lockout for self-serving reasons and
that it can be found to be in contempt of the spirit of the labour code
for that reason. This could provide just cause for the government to
declare the secret deal null and void. But, where there is no will,
there is no way. The government should answer for this.
Whatever legal recourse the workers might have, one
thing is for sure. The lockout is phony. The lockout is subsidized by
the government. It is a phony government subsidized lockout. The
government is in contempt of its social and legal responsibility to the
people of Quebec to make sure the
resources of the people are used to benefit the people. It is corrupt.
It is not worthy of the people's trust. It must cancel the secret deal.
It must stop subsidizing this phony lockout and Rio Tinto Alcan must be
brought to its senses.
End the Phony
Government Subsidized lockout!
Rio Tinto
Alcan Must Negotiate in Good Faith!
"Alma lockout financed by
the state -- no losses for Rio Tinto Alcan"; "Liberal Scandal:
Lockout subsidized by stealing $175 million a year from Quebeckers !"
A Fitting Reply to Rio Tinto's Threats
Énergie électrique Workers Give $25 a
Week
to Support
Alma Workers
Pierre Simard, President
of the Syndicat des employés
d'Énergie électrique, in Alma, April
13, 2012.
On April 13, the President
of the Syndicat des employés
d'Énergie électrique, Pierre Simard, paid a visit to the
Alma
workers
and made the important announcement that each one of the union local's
300 workers will give $25 a week until the end of the lockout to
support the struggle in Alma. This amounts
to about $30,000 a month. Simard also brought with him a $50,000
cheque. In his brief presentation Simard said the lockout is "creating
a historic bond of solidarity between the two unions." Alma union
president Marc Maltais and the workers present warmly thanked Simard
and
applauded this move by the workers of Rio Tinto Alcan's electric
division who have been staunch supporters and active
participants in the Alma struggle since the beginning. This support is
not only a sizable financial
contribution
but a demonstration of courage in the face of the threats by Rio Tinto
against these workers in particular
and all those who denounce Rio Tinto's lockout. The Énergie
électrique union
and its President received a formal notice from Rio Tinto in mid-March
demanding they desist from supposedly harming Rio Tinto's interests
during the
lockout by supporting the Alma workers. Simard told the local
media that he and his
union reject the company's attempt to interfere in the affairs of their
union.
More and more people in the region are denouncing Rio
Tinto for criminalizing and threatening workers as a means and excuse
to refuse to
negotiate in good faith for a contract acceptable to the workers.
Locked-Out Alma Workers Continue to Raise
International Support
Second Phase of International Tour
Protest at Rio Tinto's
Annual General Meeting, London, England, April 19, 2012. At left, Marc
Maltais and Guy Farrell,
representing the locked-out Alma
workers. (IMF)
On
April 15, the locked-out Rio Tinto Alcan Alma workers
began the second part of their international tour to mobilize global
support for their struggle. Once again, the delegation representing the
Alma workers is composed of Marc Maltais, the President of the Syndicat
des travailleurs de l'aluminium d'Alma
and Guy Farrell, the Assistant to the Quebec Director of the United
Steelworkers. This 10-day tour of Europe has
visited England and France. The workers and
economies of
both these countries have been affected by aluminum plant closures. At
the end
of March, Rio Tinto Alcan closed the
Alcan Lynemouth Aluminium Smelter in Northumberland on the
northeastern coast of England, using the pretext of rising costs due
to environmental regulations. More than 500 workers were thrown onto
the
streets and many more jobs connected to the smelter will be lost. Rio
Tinto Alcan was by far the biggest employer in
Northumberland. In France, Rio Tinto Alcan is threatening to close its
smelter in the small town of Saint-Jean-de-Maurienne in southeastern
France that employs 600 workers and is the centre of the region's
metallurgical industry. The deal Rio Tinto has with
Électricité de France
for hydro-electricity expires in 2014
and it is using the occasion of the renewal of this deal to threaten to
close the plant
if it does not get what it wants.
Among other things, the delegation intervened
in the Rio Tinto shareholders' meeting in London April 19, taking part
in launching the United Steelworkers' campaign calling on the
International Olympic Committee to drop Rio Tinto as a supplier
of gold, silver and bronze for the medals for the 2012
London Olympic Games.
Earlier
this year, an international tour took representatives of the Alma
workers to the United States, Australia and New Zealand, successfully
mobilizing support that included financial support and participation of
international delegations at the mass demonstration in Alma on March 31.
Protest at Rio Tinto Shareholders' Meeting
in London,
England
London, April 19, 2012.
On April 19, workers and community members from various
countries
demonstrated outside the Rio Tinto shareholders' meeting in London
against Rio Tinto's track record of attacks against the workers and
communities. The delegation representing the locked-out Alma workers
participated alongside workers from the British union Unite, the
International Transport Federation and others. The demonstrators also
demanded that the International
Olympic
Committee drop Rio
Tinto as its supplier of medals and an official sponsor of the London
Olympic
games.
The demonstrators asked that
Rio Tinto lift its lockout
against the
Alma workers and sign a contract that is acceptable to them and the
community. Demostrators from Mongolia highlighted their concern about
the Oyu Tolgoi copper
and gold mining project, a joint venture between
Ivanhoe Mines, Rio Tinto and the
Government of Mongolia. The mine is in a desert region and a key
concern is that it is going to use
huge quantities of water and affect the water
supply of local communities and nomadic herders. People also protested
Rio Tinto's refusal to answer the concerns of the communities over
toxic emissions coming
from its mining operations. Utah Mothers for Clean Air denounced
Rio
Tinto's environmental degradation in the Salt Lake City area from its
Kennecott Bingham Canyon copper mine. Also denounced were
the attacks on workers and the environment by Rio Tinto in West Papua
and Bougainville, Papua
New Guinea. The residents of Bougainville blame Rio Tinto for its
participation in the violent attacks of the governments of Australia
and Papua New Guinea against the uprising of the people of Bougainville
Island in the 1980s, where Rio Tinto operated one of the world's
biggest open pit copper mines. Bougainville
residents, who were part of the London action, have been pursuing a
class action lawsuit in the U.S. against
Rio Tinto since 2000 for environmental degradation and war crimes.
A number of workers and community members intervened
inside the meeting including Guy Farrell, the Assistant to the Quebec
Director of the United Steelworkers, who denounced the lockout in Alma
and
asked that it immediately be lifted. Rio Tinto's CEO Tom Albanese
arrogantly brushed off the concerns of the workers and of those who had
travelled from the U.S. and Mongolia to denounce the attacks on the
environment. He repeated the lies and slanders according to which the
just demands of the Alma workers about working conditions and in
defence
of the union are unreasonable and would cause a dangerous precedent in
Rio Tinto's facilities across the world if they were to be satisfied.
He also disgraced himself by repeating the slander that the lockout was
justified because the Alma workers were sabotaging production. He said
that Rio Tinto's track record on the environment is great and cut off
any discussion on this matter. He refused to let Marc Maltais speak and
was denounced by the workers present for his arrogance and
cowardice.
The delegation representing the Alma workers left
England for France
following the action with the first stop in Dunkerque where Rio Tinto
owns an aluminum smelter.
Interview
- Marc Maltais, President, Syndicat des
travailleurs de l'aluminium d'Alma -
TML: One of the highlights of your
tour in England was your participation in the Rio Tinto shareholders'
meeting in London on April 19. The media reported that Rio Tinto's CEO
was very arrogant towards you and other people protesting the
monopoly's attacks
against workers and communities. Can you tell us more?
Marc Maltais: For us the shareholders'
meeting was an opportunity to try to influence the shareholders. But
Tom Albanese and the other Rio Tinto executives were very arrogant when
they answered questions and actually refused to answer many from the
people in the
room. Tom Albanese simply laughed in my face every time I raised my
card insisting to ask my question and there was no way they would allow
me to speak. Overall their attitude was that they felt cornered and
refused to give answers; it was total intransigence. And it was not
only myself. Albanese
did not answer the questions from the Utah mothers and the person who
travelled all the way from Mongolia on their concerns about Rio
Tinto's track record on the environment. Rio Tinto is all alone and
refuses to address concerns from anybody in this world.
It applies the same method everywhere. The tribal chief
from Papua New Guinea who came to London to protest Rio Tinto's attacks
on his people even decided not to attend the meeting and went instead
to talk to students in an elementary school because at least they
listen. In my case I was
not even allowed to raise my question. Albanese knows me; we have met
before. As soon as Guy Farrell and I arrived in the hall, we were
greeted by two head security staff -- one from Quebec and one from
Switzerland. They knew my name and Guy's name. I crossed the Atlantic
to come to the meeting
and Albanese sneered at me. He showed no respect for myself and our
membership. He does not respect the hard work and professionalism of
the Alma workers. They allowed Guy to speak; I think they didn't
recognize him. Farrell asked how could Rio Tinto justify locking out
the workers at its
most profitable aluminum smelter. Albanese spoke against our demand
for guaranteed minimum levels of employment and he went so far as to
repeat the false accusations that Alma workers were sabotaging the
plant. He made no sense at all. Then Farrell asked if Rio Tinto was
interested in negotiating
in good faith with the Alma workers and when were they coming back to
the bargaining table and Albanese answered that there might be
negotiations soon. There was a good demonstration outside the meeting
with workers from Unite, the International Federation of Chemical,
Energy, Mine and
General Workers' Unions (ICEM), the International Metalworkers'
Federation (IMF), the International Transport Workers' Federation (ITF)
and people from communities in many countries where Rio Tinto operates.
Meeting with Aluminum Workers in Dunkerque, France
TML: You met with the Rio Tinto workers
of the aluminum smelter in Dunkerque, France. How did it go?
MM: We were very well received and the
meeting was very interesting. In France, there can be many different
unions organizing the same workers in a plant. There are four unions in
this plant. They told us it was the first time they had ever sat
together at the same table.
Rio Tinto is creating links amongst workers with its aggressive stand.
We could also see how Rio Tinto lies to workers everywhere and tries to
divide us. In Alma they oppose our demands by telling us they have
better deals with unionized workers around the world. In Dunkerque they
tell workers,
"look how great things are in Alma!"
In Dunkerque, Rio Tinto is also using subcontracting to
degrade working conditions. There they are called interim workers. They
were supposed to be hired just for specific projects but Rio Tinto
is using them to replace permanent workers and violate the collective
agreements and of course
their working conditions are very inferior. That reminded me of what
the Construction, Forestry, Mining and Energy Union (CFMEU) workers
told us in Australia, that whether we are talking about coal mines,
aluminum smelters or steel plants, the methods are the same. Rio Tinto
is anti-union
and is trying to smash them.
It is the job of trade unions everywhere to not only
preserve good working conditions but to constantly improve them. That
is the nature of the trade unions. I have no problem asking for
guaranteed minimum levels of employment considering the profits Rio
Tinto is making and the hydroelectric
advantages it has in Quebec. It is because our forefathers fought that
we were able to improve the conditions of the people in
Saguenay-Lac-St-Jean. It was not given to us.
Before it was like the Middle Ages there.
When RTA tells me to look at what is happening
elsewhere, how much better off you are here, and you should not make
these demands, I answer that I negotiate in Alma, not elsewhere. Deal
with us here. The other unions are doing the best they can in their
conditions to improve their situation
and we help each other, but we don't play Rio Tinto's game and get
pitted against each other.
Rio Tinto's Conflicts with Workers and
Communities in England and France
- Pierre Chénier -
As the delegation representing the Rio Tinto Alcan Alma
workers tours England and France, it is appropriate to review some
of the global monopoly's most recent attacks against workers and
communities in these countries. Rio Tinto Alcan (RTA) carries out
anti-worker
practices and abuses natural resources wherever it goes. Two prominent
examples of its attacks at this time are the
closure of the aluminum smelter in Lynemouth, England and its threat
to close the one at St-Jean-de-Maurienne, France.
Closure at Lynemouth, England
Until 2009, RTA operated three aluminum smelters
in the United Kingdom: the one at Anglesey in North Wales, jointly
owned
by RTA and Kaiser Aluminum; the one in Lynemouth in northeastern
England and the Lochaber smelter in Fort William, Scotland. While the
Anglesey facility was closed in 2009 over
termination of an electric power contract when RTA rejected
new conditions, the Lochaber facility is still in operation.
On March
29, Rio Tinto Alcan stopped production for good at the Lynemouth
facility. Of the 515 workers who were working there,
323 will be laid off permanently in May. Over 100 are expected to stay
until year's end in the carbon and casting plants and about 60 workers
are expected to remain at work decommissioning and decontaminating the
facility. Besides the 515 direct job losses, the unions and local
politicians estimate over 3,500 workers
in the smelter's supply chain are going to lose their jobs. RTA also
owns a coal and biomass-fired power plant in Lynemouth that
produced electricity for the smelter while excess power is sold to the
national grid. The power station employs 111 workers and at the moment
Rio Tinto says it is trying to
sell it; otherwise, it may close as well. The smelter is by far the
biggest private employer in southern Northumberland county where
Lynemouth is located and is the last major manufacturing plant in the
area. The blow to the workers and community is particularly severe
considering that according to the GMB
-- Britain's General Union -- as of the end of 2011 over 146,000 people
were unemployed in northeastern England, a rate of 11.6 per cent, the
highest in the UK. The area has long been affected by high unemployment
and under the hoax of reducing it the government at the beginning of
the 1970s gave large amounts
of public money to Alcan to build the smelter and the coal-fired power
plant.
RTA announced the smelter's closure at the
end of November 2011, totally indifferent to the fact it provided
livelihoods directly or indirectly to thousands of people in an area
suffering high unemployment and is a centre of integrated economic
activity with a chain of suppliers, a deep sea port,
railway, power station and all kinds of services and is one of the
last producers of primary aluminum in the UK.
RTA blames rising energy costs because of environmental
legislation and an insufficient rate of return on investments to try to
justify the closure. Besides, RTA's CEO Jacynthe Côté went
so far as to
suggest that, with some sadness, the workers agreed with the closure
after what she called a "fair and transparent
consultation process."
She said: "I am saddened by the closure of Lynemouth
Smelter but we have reached this decision only after a thorough
strategic review of the plant and a fair and transparent consultation
process. I have met with Lynemouth unions and staff members and I have
great respect for the manner in which they have
represented their colleagues during consultation."
The so-called strategic review exposes the monopoly's
self-serving considerations. According to RTA, the first
consideration was rising energy costs related to environmental
regulations. The mainly coal-driven power plant is known for the
pollution it causes the community. New carbon taxes
are expected to be put in place by the European Union and Britain by
2013. RTA says the measures it will have to take to reduce
emissions will reduce profits and therefore claims it is justified
to shut down production and leave the area stranded. For a number of
years it
has asked for public money to be spent to reduce
its emissions, another example of this monopoly refusing to take
responsibility for its activities.
However, many people in the area point out environmental
legislation is not the whole story to explain why RTA is closing
Lynemouth. They base themselves on actual statements made by Rio Tinto
executives that highlight Rio Tinto's new policy of demanding a 40 per
cent rate of return for investments in its aluminum facilities.
One of these executives, John McCabe, of RTA Corporate
Affairs, was quoted in the press regarding the closure: "Rio Tinto is
streamlining its global aluminium business in order to focus on its top
assets globally, unfortunately Lynemouth isn't considered to be one of
them as it does not return a 40 per
cent rate of return for the business."
As far as the 90-day so-called consultation with the
unions and stakeholders is concerned, it was never about whether or not
the smelter would close and instead was on workforce re-training and
similar measures. Jacynthe Côté's statement suggesting the
workers
accept the closure and believe in her fair and transparent
process flies in the face of reality.
Here, for example, is what the GMB union stated in a
communiqué at the end of November 2011:
"GMB, the largest private sector union in the North East
of England, reacted with fury at the decision by RTA to
close its aluminium smelter in Lynemouth, Northumberland. The Company
intends to close the Lynemouth Smelter with the loss of 515 workers and
its nearby Power Station with a further
111 workers to go...This decision by Rio Tinto is a disgrace. Rio Tinto
bought this firm for several billions just a couple of years ago. It
appears that they are dressing up a strategic review and the decision
to close, to disguise the money they paid out at the very time when the
world recession was starting to bite.
We want to know if public money was used to get Rio Tinto to buy in the
first place and if so what is going to happen about that. GMB members
want to know why they are making this decision yet saying for instance
that the Power Station could be sold as a going concern. Why don't they
find other ways of keeping
the plants open instead of making an announcement and then saying they
are going to have a 90 day consultation. At the very time when 146,000
people are unemployed in the North East, a rate of 11.6%, the highest
in the UK, this is a callous move by Rio Tinto. At a time when youth
unemployment is the worst
since 1992, this is a huge blow to manufacturing and to the local
economy. The announcement reinforces the need for the government to
intervene to protect local communities. Pious words about re-training
and seeing what skill matching is available fools no-one. It is brutal
out there and people need to wake up
and realize what a critical state the economy is in now and act now."
Threats of Closure of Saint-Jean-de-Maurienne Smelter
in France
RTA
is threatening to close its aluminum
smelter in Saint-Jean-de-Maurienne, a small town of about 8,500 in
Savoie province in southeastern France. The town is part of the
Maurienne Valley, which workers call "the aluminum valley" since it was
one of the first places to produce aluminum using
electrolysis technology and had many smelters, now closed, in addition
to the one in St-Jean. Today,
this aluminum smelter is one of only two remaining in France, the
other in Dunkerque, is also owned by RTA. The
St-Jean-de-Maurienne smelter employs about 600
workers and it is estimated the facility's closure would cause the loss
of about 2,000 indirect jobs. Tourism is the second major economic
sector in the valley.
RTA is threatening to close the plant because it says
it is not satisfied with the conditions of the new electrical supply
contract being proposed by Électricité de France (EDF) to
replace the
current one that expires in 2014. The existing contract was signed in
1984 by EDF and Pechiney which owned the smelter at
the time (Alcan bought Pechiney in 2004 and was subsequently bought by
Rio Tinto in 2007). The people of the area say Pechiney's contract at
that time was an historically low price. It
expires in 2014 and RTA has declared the new price is too
high and might push it to close the facility
upon which thousands of families in the valley depend for their
livelihood. RTA pushed its arrogance so far as to say the new
price being proposed is competitive in terms of what it can get
elsewhere in Europe, but not in the world. It gives itself the right to
decide whatever it wants no matter what the costs
for the people. Of course these negotiations are held in total secret
and therefore violate the right of workers and their communities to
decide their future and that of the industry.
Protest in
Saint-Jean-de-Maurienne at the time of Aluminium Pechiney's purchase
by
Rio Tinto Alcan demands the new owner increase investments in the
plant and step up production to meet France's aluminum needs.
(Le
Dauphiné Liberé)
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The unions involved and many local politicians say the
electricity contract issue is being used by RTA as a pretext to
close and they suspect the monopoly of wanting to do so in order to
jack up aluminum prices. The former President of Pechiney told local
media these were Alcan's tactics when it bought
out Pechiney -- to shut down aluminum smelters in Europe so as to
jack up prices. Workers point out RTA has barely invested any
money to modernize or even maintain the place for years and that it
actually restructured the workforce in 2009 through "voluntary
departures" that deprived the plant of many
workers involved in maintenance.
These cases in England and France underscore the
necessity to step up the fight
against the anti-worker and anti-social attacks of Rio Tinto.
Read The Marxist-Leninist
Daily
Website: www.cpcml.ca
Email: editor@cpcml.ca
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