Geelong smelter jobs at risk, Trades Hall claims

GEELONG Trades Hall has forewarned that aluminium giant Alcoa will inevitably close its Victorian operations.

But the dire prediction has divided the union movement, with the Australian Workers Union labelling the comments as misguided.

It comes as Alcoa failed to guarantee its future in the region, with the company confirming it was working through the challenges facing the energy-hungry smelters in Point Henry and Portland.

Alcoa's head of climate strategy Tim McAuliffe told a Senate inquiry into the carbon tax that the strong Australian dollar, high input costs and uncertainty over the true cost of the carbon tax threatened the future viability of both the Victorian aluminium smelters.

The company issued a broad statement yesterday, saying the outlook for aluminium remained positive and the company was confident of meeting the challenges with the help of its workforce.

Alcoa is Victoria's largest exporter and employs around 1000 people in the Geelong region through its Point Henry operations.

Trades Hall secretary Tim Gooden said rising employment costs and a strong Australian dollar were having the biggest impact on the company, which would inevitably force it overseas, rather than the carbon tax.

But Australian Workers Union state secretary Cesar Melhem said he was "reasonably confident" Alcoa would stay in Victoria for many years to come.