Alcoa’s Spanish smelter: No agreement reached following the last meeting of consultation period; 15 days grace period left for next step

The last meeting of the formal consultation period for collective dismissal at the Alcoa’s San Ciprián aluminium plant in Spain ended on 4^th August’20, without an agreement with the workers’ representatives.

As per the Spanish regulations, Alcoa has up to 15 days as grace period from the end of the consultation period to announce a decision regarding the smelter’s 228,000 metric tonnes of annual capacity.

Alcoa and the San Ciprián Works Council have been meeting throughout the formal consultation period, which began on 25^th June’20, to discuss a proposed restructuring that aims to stop persistent and recurring financial losses at the smelter and find a solution for both the Company and its workers.

The Company proposed multiple proposals to the workers’ representatives, including a temporary dismissal through a Spanish social program known as ERTE for two years with the potential for a restart, and an offer to conduct a sales process for the aluminium plant. However, all offers were rejected.

Alcoa and members of the San Ciprián Works Council began negotiations through an informal process that began on 28^th May’20, followed by a formal process for collective dismissal that extended beyond the legally mandated timeline.

The San Ciprián site is comprised of an aluminium plant and as well as an alumina refinery. Notwithstanding the alumina refinery was not included in the consultation process.