Kitimat Smelter to Face Cost Cutting Measures?

Wednesday, January 21, 2009 03:46 AM

Prince George, B.C.- While Rio Tinto Alcan's head office did not include Kitimat in it's announced cuts yesterday, there is growing speculation there will be changes at the Kitimat operation.

Workers huddled in a meeting yesterday and while eveything is supposed to be hush hush, there are suggestions the head office order to all operations to cut costs will come in the form of job losses. The rumours suggest up to 100 non union positions are in jeopardy. The buzz from Kitimat also suggests there will be a reorganization of unionized workers, that one of two casting shops may be closed allowing the workforce to be better utilized and reduce the amount of overtime that is being banked in order to complete some of the processes.

While the information came too late last evening for anyone at Rio Tinto to respond to our calls, the company's Canadian spokesman did say yesterday that all Rio Tinto Alcan holdings have been instructed to trim costs.

It is expected that Rio Tinto Alcan will offer details or, at the very least, a clarification some time today.

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Posted on Wednesday, January 21, 2009 03:46 AM in News by 250 News

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Comments

Posted by: Eagleone on January 21 2009 7:40 AM

Going into an election the BC government is going to have egg on their face (if we have an opposition party?) unless they get negotiating now the costs to Rio Tinto Alcan for not living up to their previous agreements... IMO.

I think the cost to Rio Tinto should be BC Hydro nationalizing the Kemano dam to protect the BC watershed environment, secure BC energy and economic sovereignty, and protect downstream safety issues like the PG ice jam and the salmon runs. To have direct public influence, rather than through a third party.

BC Hydro could turn around and say if you build we will give you this discount bulk rate... and if you don't we will negotiate with your competitors to see if they have any interest in setting up shop at those rates.

Posted by: metalman on January 21 2009 7:53 AM

It would have been nice to see the smelter expansion go ahead.
metalman.

Posted by: giterdun on January 21 2009 8:09 AM

Your very right Eagleone... B.C. would be far better off if the Kemano/Kenny Dam Watershed was controled by the govt. Control of hydro should never be in the hands of private companies, period.

Posted by: my2bits on January 21 2009 10:06 AM

Under the agreement the Campbell government made with Alcan, they no longer have to produce one shred of aluminum to keep Kemano and all.

It would be far more profitable at this time to totally shut down the smelter at Kitimat, and just produce power for sale. Under the new agreement they can do that.

Posted by: diplomat on January 21 2009 10:11 AM

This would be a good time (global depression) to ask RT Alcan if the Kemano power generation entity is for sale for a prize.

The province can borrow the money and add it to the debt. It's a wonderful asset.

If it's not for sale - well, I don't see how it can be wrested away from the rightful owner.

Posted by: diplomat on January 21 2009 12:57 PM

My2bits, I don't know why you made your post but it is completely false.

The Campbell government did NOT make any deal with Alcan whatsoever.

Alcan was sued repeatedly by the City of Kitimat (and others) to once and for all clarify what rights Alcan had according to the original agreement of 1953.

The Supreme Court came down with a final ruling recently which specifies what the obligations of Alcan are and what they are not.

All aspects of the original agreement and the subsequent agreements that every government of this province signed over the last 5 decades (including the NDP) were taken into consideration during several appeals.

You may not like the final outcome, but to infer that the Provincial Government circumvented the legal processes and laws of this province and struck a deal with Alcan is utter nonsense.

Posted by: lostfaith on January 21 2009 1:35 PM

For our wonderful govt to give away our rivers for corporate profit is criminal.
They are doing this behind the peoples backs without public consultation.

They need to be stopped!

http://saveourrivers.tv/powerplay_player5.html

Posted by: tinyapplecork on January 21 2009 2:13 PM

Rio Tinto Alcan did not take jobs away from its site in Kitimat. That is a sign of good management at the plant in Kitimat. Amazing when you think of it. The price of aluminum has fallen and the market for the product has shrunk. The current situation of the global marketplace is forcing business to reexamine their business plans. It is prudent for Rio Tinto Alcan to reduce their costs and anticipate their future. The Kitimat smelter has been fortunate but only because of its strategic business plan.
In my opinion, there will be cuts. But not in the way of trimming jobs - they already shed several hundred positions not that long ago. Overtime will be the first thing to go. Hours might be reduced per employee so their shift schedules may change but I am only speculating. The economy will bounce back, but until it does, union and management have some hard decisions to make. Creative solutions are on the horizon!