Meeting of the Aluminium Pechiney works committee on 8 April on the proposed project to transform the Aluminium Dunkerque plant organisation

An information meeting – outside the procedure – of the Central Works Committee was held today, in which the bases for the planned project to transform the Aluminium Dunkerque plant organisation were presented.
During the meeting, senior management pointed out that:

  • The Rio Tinto Alcan Group is operating in a difficult environment with structurally low aluminium prices (since June 2013, the LME has hovered around $1,700/t with an average of $1,750/t).
  • Since 2010, Aluminium Dunkerque’s performance has deteriorated in terms of both cash flow generation and net income (the 2014 budget forecasts negative cash flow of -$89/tonne produced).
  • This context is forcing the plant to accelerate the reduction of its fixed costs and durably optimise its organisation.

Aluminium Dunkerque’s ambition is to become the most competitive aluminium producer in Europe and to secure its future in the coming years. To achieve this ambition, the site has set itself clear objectives and must pursue the initiatives undertaken since 2012 as part of the leADer+ project to reduce its costs and close the gap created by the rise in energy prices:

  • Engage every employee in contributing to the plant’s good performance through their skills and capacity for initiative.
  • Create value for our customers through our product and service quality.
  • Have a reliable industrial tool with controlled costs to ensure its self-financing.
  • Have a competitive energy supply.
  • Respect our environment by complying with regulatory requirements over the long term.
  • Improve our technology to anticipate our customers’ needs.

Aluminium Pechiney has therefore decided to implement organisational transformation projects which will have an impact on 65 jobs at Aluminium Dunkerque.
Senior management has decided to carry out this reorganisation solely through a voluntary departure scheme with no lay-offs. Within the framework of current legislation, Aluminium Pechiney has proposed the trade unions to open negotiations on individual social support measures immediately, prior to the legal information/consultation procedure.

The next steps are as follows

  • April 9: Aluminium Dunkerque works committee meeting
  • April 17: 1st negotiation meeting with the trade unions
  • April 23: 2nd negotiation meeting with the trade unions
  • May 2: 3rd negotiation meeting with the trade unions
  • May 6: start of the information/consultation procedure at an extraordinary Aluminium Pechiney works committee meeting, to be followed by a similar works committee meeting at the Dunkerque site.

At this meeting, the trade unions and senior management agreed to conduct a constructive industrial relations dialogue in everyone’s interest.

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Works committee information on the 9 April 2014 meeting