Kaiser Aluminum Recesses Talks With USWA

HOUSTON--(BUSINESS WIRE)--April 6, 2000--Kaiser Aluminum (NYSE:KLU) said today that its two days of talks with the United Steelworkers of America in Chicago have recessed.

During the talks, the company presented the union with a comprehensive new proposal to settle the labor dispute. The new proposal includes an improved offer regarding retiree medical care.

The proposal also includes a revised offer regarding return-to-work status and the effects of the company's productivity proposals. With respect to the Tacoma, Mead, Newark, and Gramercy facilities, in general, persons who were hourly employees as of Sept. 30, 1998 and who have not since retired or resigned employment would be permitted to return to work following the ratification of a new labor contract. The company said it believed it could nonetheless still achieve its targeted workforce levels because of attrition that has occurred over the life of the labor dispute.

The company's revised proposal also covers the Trentwood facility, where attrition is not expected to be sufficient to enable the company to meet its targeted workforce levels. For that facility, the company has offered a package of voluntary early retirement incentives -- and enhanced layoff benefits and severance benefits for employees who would be affected by job reductions.

Kaiser and the USWA have agreed to meet again on April 18 and 19 in New York City.