Strike at Alcoa’s Mosjøen smelter in Norway commences

Rhea-AI Summary

A strike at Alcoa's Mosjøen smelter in Norway commenced on August 22, 2022, due to failed labor negotiations. The strike impacts several industrial plants and is governed by Controlled Reduction Agreements. Mosjøen, which has an annual production capacity of 200,000 metric tons, will cease deliveries until the strike concludes. A 20% production reduction is planned by September 19, with further curtailments if the strike persists, potentially leaving only 34 operational pots. Approximately 550 employees are affected, with 444 under union agreements.

Positive

• None.

Negative

• Strike initiated, halting product deliveries.
• 20% production reduction planned by September 19.
• Further reductions could leave only 34 pots operational.
• Approximately 550 employees impacted by the strike.

PITTSBURGH--(BUSINESS WIRE)-- A strike at Alcoa’s Mosjøen smelter in Norway began today, August 22, 2022, after a collective agreement between Industri Energi and Norsk Industri was not reached by the agreed-upon deadline.

The strike action is being implemented at several industrial plants that represent the Norwegian electrochemical industry. While the labor negotiations cover multiple locations, individual sites included in the strike action have their own Controlled Reduction Agreements. The agreements outline actions once the strike begins.

Mosjøen has an annual capacity of 200,000 metric tons of production across five potlines with 404 pots. In the case of Mosjoen, these actions will begin in accordance with its Controlled Reduction Agreement:

• Deliveries of products from Alcoa Mosjøen will stop until the end of the strike.
• The Mosjøen location will now work toward a 20 percent reduction in smelter production by September 19, should the strike last that long.
• If the strike continues past September 19, another 10 percent of production will be curtailed every other week, until 34 of the 404 pots remain operational.
• The agreement allows either the union or the Company to put certain functions on temporary leave during the strike action, so long as it does not compromise the safe operation of the facility. The union had 17 people who did not report to Mosjoen on the first day of the strike; that number will increase to 35 people on Wednesday, if the strike action continues. Mosjoen employs approximately 550 people, including 444 who are covered by the union agreement with Industri Energi.

Alcoa’s Lista plant in Norway is not included in the strike action at this time.

About Alcoa Corp.

Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina and aluminum products with a vision to reinvent the aluminum industry for a sustainable future. With a values-based approach that encompasses integrity, operating excellence, care for people and courageous leadership, our purpose is to Turn Raw Potential into Real Progress. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed breakthrough innovations and best practices that have led to greater efficiency, safety, sustainability and stronger communities wherever we operate.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220822005467/en/

Investor Contact

James Dwyer

412-992-5450

James.Dwyer@alcoa.com

Media Contact

Jim Beck

412-315-2909

Jim.Beck@alcoa.com

Source: Alcoa

FAQ

What caused the strike at Alcoa's Mosjøen smelter?

The strike was initiated due to unsuccessful labor negotiations between Industri Energi and Norsk Industri.

When did the strike at Mosjøen start?

The strike began on August 22, 2022.

How much production will be reduced at Alcoa Mosjøen due to the strike?

A 20% reduction in production is planned by September 19, with the potential for further reductions.

How many employees are affected by the Alcoa strike in Norway?

Approximately 550 employees are affected, including 444 who are covered by the union agreement.

What is the production capacity of the Alcoa Mosjøen smelter?

The Mosjøen smelter has an annual production capacity of 200,000 metric tons.