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Alcoa wants union concessions to pay for equipment fix
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Monday, 02 Feb 2009
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A huge hydraulic press at Alcoa Inc's Forged and Cast Products plant in Cleveland that needs USD 68 million in repairs has placed the company and United Auto Workers Local 1050 at odds concerning who pays the bill.

The company has told Local 1050 that it must agree to concessions to finance the repairs, or risk job transfers to a nonunion California facility. A 10 year, USD 360 million contract with Lockheed Martin to make parts for the F-35 fighter jet figures into the situation. The union represents 852 of the Cleveland plant's 1,250 workers.

Mr Kevin Lowery spokesman of Alcoa said that "We are talking to all potential stakeholders in this situation, but it doesn't do us well to talk about the details."

Representative Mr John Murtha, D Johnstown, along with Representative Mr Dennis Kucinich of Cleveland wrote a letter to Alcoa CEO Mr Klaus Kleinfeld, urging compromise in the situation. Mr Murtha is chairman of the House Defense Appropriations Subcommittee, which oversees all Pentagon spending.

The letter said that even though Lockheed Martin and the state of Ohio have offered Alcoa incentives to fix the broken press, the company has asked the union to agree to a 4 year wage freeze, to a doubling of out of-pocket health care costs, to contract language dealing with the union's right to strike, and to a benefit freeze for new hires.

Mr Jeff Judson Local 1050 president said that the seriousness of the situation at the Cleveland plant is real, and that the UAW was doing everything it can to maintain existing employment. He added that "Not only are the UAW jobs affected, but there are an additional 400 jobs performed by two other unions, the International Association of Machinists, and Security, Police and Fire Professionals of America, and salaried employees."

(Sourced from www.pittsburghlive.com)

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