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Retiree Rumblings Over Alcoa Contract Plays Out in Protests

Posted on: Friday, 16 June 2006, 00:00 CDT

By Rebecca Ferrar, The Knoxville News-Sentinel, Tenn.

Jun. 15--Alcoa retirees protested Wednesday against a proposed labor contract at three Knoxville-area sites, saying the tentative agreement would unfairly hurt retirees' benefits.

Demonstrators picketed at the union hall of the United Steelworkers of America, Local 309, in Blount County, and also at Alcoa's north plant and outside the company's downtown Knoxville offices to send a message that they will vote June 22 to reject ratification of the tentative agreement.

"If we vote this contract down, we will instantly be on strike," retiree Gary Graham said Wednesday.

At issue is a provision in the agreement that calls on retirees to begin paying a share of their health-care benefits for the first time.

A retiree and spouse would pay $150 a month in premiums during each of the four years of the contract.

"It's a lose-lose situation for members," said Graham, who has cancer and said he cannot get insurance anywhere else. "We would have to pay more for medical care and prescriptions. That comes out of our retirement."

On Tuesday night at a regularly scheduled union meeting, a majority of members voted to recommend rejection of the tentative agreement reached between the union and the corporation on May 31. It's called a "master agreement" that covers 9,000 workers, including about 1,300 at the Blount County plant that makes sheet aluminum for the beverage industry, and 14 other Alcoa locations.

"We're very opposed to it," Graham said. "And it's not just at this location, but at the other 14 locations voting on this contract. It's very disagreeable."

Charles Frank, who retired last year, said the premiums would take away from retirees' pensions.

"We've got people retired drawing $600," Frank said. "This is putting people in a bad, bad situation. If Alcoa was losing money or in trouble, we have always worked with them. They're not in trouble. They're making record profits."

Alcoa's first quarter earnings were $608 million, up from $260 million the year before. Sales for the first quarter increased 16 percent to more than $1 billion compared to first quarter 2005 sales.

Kevin Lowery, spokesman for Alcoa, said Wednesday the company is awaiting the outcome of the vote.

"The USW has a ratification process," he said. "We're waiting for them to go through that process and we will see what the outcome of that process is and go from there."

Lowery said the protests have "been going on for some time. There's nothing new to that."

He said he believes the two sides reached a "fair agreement" that is a "win-win situation" for the union, the company, the community and Alcoa's customers.

However, Frank said had he known of the planned health-care premiums, he would not have retired.

"I always thought I'd have health care as long as I lived," he said.

Although retirees have been protesting cuts in retiree benefits since September, Graham said, "We have a larger than normal group of protesters." He said there were about 75 protesters at the union hall, another 50 at the north plant and another group in downtown Knoxville.

Meanwhile, Brickey Beasley, president of Local 309, has taken a position in favor of the agreement and hopes to avert a strike.

"Last night (Tuesday), the recommendation was to vote it down," Beasley said. "I don't know what to make of it."

Beasley said he would vote to accept the agreement. He said without the contract, retiree contributions would increase each year.

"The membership I know are not satisfied with the contract. The retirees are not satisfied with the contract," Beasley said. "Truthfully, it's coming down to the deadline to vote. We have to decide if we can do better and strike. People have to make their own decisions."

Frank said he was "very disappointed" in Beasley's position on the agreement.

He said active employees like Beasley will get a 2.5 percent pay raise and a $1,500 signing bonus.

Alcoa has been planning for a strike by training salaried employees to do hourly jobs.

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Copyright (c) 2006, The Knoxville News-Sentinel, Tenn.

Distributed by Knight Ridder/Tribune Business News.

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Source: The Knoxville News-Sentinel

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