Union officials could see the layoffs announced by Alcoa Inc on January 6th 2009 but Mr Brickey Beasley president of Local 309 of the United Steel Workers said that the magnitude of the action has shocked everybody.

He said that the union monitors the London Metals Exchange aluminum prices and they knew that when the market fell below USD 1,550 a tonne a few months ago that the resulting price was less than it costs to produce it. He added that the union expected 1 production line to be shut down, but not 2.

Alcoa said that the production cuts will idle about 450 workers in and about 13,500 worldwide or about 13% of its global work force and slash its aluminum production by 18%. It hopes the reduction strategy will save USD 450 million per year.

Mr Beasley said that the Blount County production lines being halted take ore and smelt it into molten metal in what are known as pot rooms. Because of the nature of the work, the operation has to run 24 hours a day. It is dangerous work that requires about 150 people to run both lines for an 8 hour shift.

Alcoa is the second largest employer in Blount County behind Denso and the 450 layoffs represent about a third of Alcoa's workforce.

(Soured from www.knoxnews.com)