Employees seeking specifics
Lack of answers frustrates Century workersBy JODY MURPHY, jmurphy@newsandsentinel.com
Article Photos
RAVENSWOOD -Employees laid off from a Jackson County aluminum plant are frustrated with the company and a lack of answers.
Century Aluminum officials say they remain committed to keeping an option to restart its Ravenswood operation, but that is little consolation to members of the local union who are frustrated with a lack of specific answers.
Jason Miller, president of Local 5668 of United Steelworkers union, said hope the plant will be restarted is always there, but union officials are disappointed in the lack of answers from Century.
"They have given no notification of a start-up date or anything," Miller said. "We have asked them for specifics and they haven't shed any kind of light at all."
Mike Dildine, spokesman for Century Aluminum, reiterated the company's stance.
"We are doing everything we can to retain the option to restart the plant," he said. "There is no timeline.
"We are trying to do everything we can to restart the facility."
In February, Century announced it was shutting down the Ravenswood operations and would lay off most of the plant's 651 workers. The company reported a net loss of $33.9 million in the second quarter of 2009.
In its third quarter report, Century Aluminum reported a net income of $40.1 million. The report stated the results were positively impacted by the termination of an existing power contract and its replacement with a new power contract at the Hawesville, Ky., smelter as well as a $7.5 million tax benefit.
Dildine said the company's improvement was the result of a stronger aluminum market.
"Our earnings are tied closely to aluminum markets, which were stronger in the third quarter."
Dildine said Century needs three things to restart the plant: Affordable, long-term energy; higher aluminum prices; and competitive labor costs.
Company officials have been in talks with Appalachian Power to obtain cheaper electricity. The price of aluminum has risen in the last 11 months, climbing from about $1,400 a ton in December 2008 to almost $1,900 a ton. Dildine said there is no target aluminum price to signal the restart of the Ravenswood plant.
He said reopening the plant would require a major "capital commitment."
The plant, built in 1957, is the oldest and smallest smelter in the company. The plant was also the third largest employer in Jackson County, with an annual payroll of $34 million and an average annual salary of nearly $51,000.
Union officials balk at talk of competitive labor costs.
Miller said Century has employees to take concessions, including a pay cut and reduction of insurance benefits.
Last week, the company notified those who retired prior to June 1, 2006, of its intent to cut the medical retiree program, effective Dec. 31.
"They want us to open up the contract, to allow negotiations, which I don't see happening," Miller said.
"It is pretty much a waiting game."
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ramrod
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11-06-09 9:21 AM
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what about the $1.7 BILLION the company GAVE to their largest stockholder in 2008? the article is online and ANYONE can read about it.fact is the company could be operating right NOW and making a profit. the governor wont even talk about it. raw materials are down right now and instead of locking them in they are trying to cut labor costs which is 14% of overhead. the company is mismanaged by the board of directors and their only desire is to send profits to switzerland and avoid most taxes. negotiate? the only reason that feet are dragging is that the company wont commit to a restart , or is it that the company really doesnt want to run the plant? its not just the union that they are shortchanging as they have already done it to the salary at this plant only. they didnt cut anything else corporate wide to other salaried employees. corporate greed at its finest. this plant had price hedges in place that guaranteed a profit and sold them out to Glencore LTD, so glencore wouldnt lose $$
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tubaman
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11-04-09 11:28 AM
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You are correct! These moron union officials are happy to stand on their "we won't negotiate anything" platform, even though the entire membership is unemployed. What a bunch of idiots.
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JCB1964
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11-04-09 7:34 AM
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Waiting game??? Don't open the contract and don't go back to work. That's why they left, GREED. Doesn't one think A job, is better than NO job? Obviously some don't. Living beyond one's means is what got this country in the trouble it's in. Always blame it on someone else, don't take any responsibility. That seems to be the American way, nowadays. I want everything RIGHT NOW,...I don't wanna have to work for nothing,.........NOW!!
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