Intalco offering severance, early retirement options
Scott Ayers, The Bellingham Herald
Looking to reduce its work force before it idles for two years, Alcoa Intalco Works has offered union employees early retirements or voluntary severance starting Oct. 1.
Details of the "Hourly Voluntary Reduction Options" were mailed to workers Tuesday.
"We're trying to entice senior employees to retire early," said Clarence Harper, business representative for the International Association of Machinists and Aerospace Workers' Ferndale lodge.
The lodge represents all hourly employees at the smelter. The smelter employs about 930 people.
Lessen layoff blow
By getting some employees to leave voluntarily, the company and union hope to reduce the number of people who will be laid off when the smelter officially idles in October. Earlier this year, Alcoa Inc. agreed to close the Ferndale-area plant until 2003 to help alleviate an electricity shortage on the West Coast. In return, Bonneville Power Administration agreed to give Intalco money to pay most, but not all, of its employees during the downtime.
Plant officials couldn't be reached for comment Wednesday. Previously, they have not said exactly how many employees will be laid off.
Employees have been concerned that the pay they'll receive during the idle time will be less than what they're accustomed to because they will no longer receive overtime or shift differentials for working night shifts.
3 options offered
The "Hourly Voluntary Reduction Options" include two aimed at workers near retirement age and one aimed at any worker willing to take money to leave in October. The options:
• An early retirement plan open to anyone at least 55 years old with at least 12 years of service for the company. Employees would receive a lump sum of $500 per year of service, $400 per month until age 62 and retirement starting Oct. 1.
• A "paid furlough" plan open to anyone at least 53 years old and with at least 10 years of service. These workers would receive two years of "base rate" pay and continuation of their benefits. Their pensions would continue to accrue through Oct. 1, 2003; the employees would be eligible for reduced retirement at that time and would have to retire or be terminated.
• A "voluntary severance" plan open to all hourly employees. Workers would receive $10,000 plus one month's pay for each full year they've worked with the company, with a maximum of 18 months paid. They'd receive medical, dental, vision and prescription benefits for the length of the severance period, or until they obtain other coverage, whichever comes first.