By Lynford Simpson,
Staff Reporter
SOME OF the nearly 5,000 workers em-ployed by Alcan Jamaica Company in its bauxite-alumina and farming operations will lose their jobs as a result of Alcan Aluminium Limited's decision to pull out of Jamaica, says Norman DaCosta, island supervisor of the National Workers' Union.
Mr. DaCosta, the union's spokesman on bauxite-alumina, says that 1,500 people are directly employed in Alcan Jamaica Company's bauxite/alumina operations.
"Insofar as the workers are concerned the news of the pull-out came like a bolt from the blue," Mr. DaCosta told The Gleaner yesterday. The NWU is one of three unions representing Alcan employees.
He said quick action on his part prevented protest action by several workers Tuesday.
Michael Bell, Alcan's director of global business planning, had earlier said the company would be fair and equitable to all its employees in Jamaica. But, Mr. DaCosta has expressed some reservations. He feared that there could be problems accessing pension benefits held in funds overseas by the parent company.
"It is a concern that carries no less importance to me than any other concern. I hope for the best but I expect the worst," he said.
Mr. DaCosta, said the union would be meeting on February 23 with representatives of Glencore which will be buying the Alcan assets, to discuss how the sale will affect the workers.
Many of Alcan's workers have more than 10 years service with the company which first came to Jamaica just over 50 years ago. Entire communities in Manchester where its Kirkvine plant is located, and St Catherine where it has its Ewarton plant, are almost totally dependent on Alcan.
Mr. DaCosta said that while the impact would not be felt immediately, it could have telling effects down the road. He said that all categories of staff would be affected in what would become an inevitable redundancy.
News of the pull- out, Mr. DaCosta said, was particularly bad for workers especially against the background of the improvements recorded after the signing of a Memorandum of Understanding (MOU) between the management and the unions three years ago. The company has in fact experienced record production for the last five years during which there was no industrial relations problems.
During this time there was a US$8 to $9 reduction in the cost per tonne of alumina, plus a 23 per cent improvement in productivity. "For the first time we linked productivity to wages so that if the plant didn't perform your pay was at risk," Mr. DaCosta said. As part of the improved efficiency, the company entered into longer contract periods with its employees and the unions had succeeded in having Government grant levy relief to companies on additional capacity brought about by expansion.
According to Mr. DaCosta, part of the surprise caused by the pending pull out had to do with the fact that Alcan had a better growth rate over the life of the MOU than all other bauxite companies operating locally. He pointed out that prior to the MOU Jamaica was classified as a high cost/low productivity and volatile bauxite location.
Mr. DaCosta confirmed that Alcan's assets will be sold to Glencore Ltd., the Swiss-based company with annual revenue of US$30 billion.
It is the same company which bought an Alcan plant in Ireland a few years ago, and the same company from which the Jamaican Government borrowed US$100 million against future alumina sales. Glencore will begin operating here at the end of March.
Alcan's local representatives said Tuesday the sale of the company's stake in bauxite and alumina falls under its asset disposition programme announced by its parent company last December. Bauxite and alumina apart, Alcan is one of the country's largest producer of beef in Jamaica. With 15 farms throughout the island, the company is also involved in fish-farming and orchids.
