Alcoa Clinches Labor Agreement June 04, 2006

Alcoa Clinches Last-Minute Labor Deal

ST. LOUIS, June 1, 2006 (From Reuters and Business Wire) - Alcoa  and the United Steelworkers (USW) have reached a tentative agreement on a new 4-year labor contract covering approximately 9,000 Alcoans at the company's 15 master agreement locations.

The company late on Wednesday night said it had reached a deal with the USW, covering plants representing about one-fifth of its domestic work force.

An Alcoa spokesman said the company would not give a detailed breakdown of deal terms, leaving it instead for the union to take that information to its members.

Whatever the terms, though, analysts were quick to point out the benefits of a settlement for industries that rely on aluminum, such as can makers.

The United Steelworkers, which got authorization from members for a strike about two weeks ago, said little on its Web site other than that it would begin to set up procedures to ratify the deal.

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