Alcoa: Layoffs will claim 150-160
By Kathleen Gilstrap, World staff writer
WENATCHEE -- Alcoa will cut 150 to 160 employees at its Wenatchee Works plant this summer, eliminating nearly one-fourth of the workforce at one of the area's largest employers, a top company official says.
The job cuts will take the form of early retirements and layoffs, said Works Manager Phil Rasmussen. Alcoa in January closed two potlines, saying it could make more money selling electricity back to the Bonneville Power Administration than it could making aluminum.
Rasmussen said the number of layoffs will depend on how many workers take early retirement.
Members of the Wenatchee Aluminum Trades Council, an umbrella group for five unions, approved an early retirement package for workers at Alcoa Thursday night.
Up to 70 workers would be allowed to retire early under an agreement worked out between union and company officials, Alcoa and union officials said.
Wayne Pretts, the president of the Trades Council, said about 140 workers at Alcoa Inc.'s Wenatchee Works qualify to apply for the retirement package.
"For everyone who takes it, it will allow a newer employee to stay on," Pretts said.
Details of the retirement package were not disclosed, but Rasmussen said the terms would be made public next week. Employees qualify for the package based on age and years of employment.
Union and company officials are still negotiating the number of layoffs expected from the shutdown of two potlines at the plant in January.
Pretts said it is too soon to say how many workers will be laid off.
"This is one of the things we will really be getting into this month, especially after we see how many people take early retirement," Pretts said.
The plant's two potlines were shut down when Alcoa sold 150 megawatts of electricity from the plant back to the Bonneville Power Administration. An energy shortage across the West is driving energy prices up. As a result, aluminum smelters, which consume vast amounts of electricity, have cut production across the Northwest and sold their power back to utilities.
Two Wenatchee Works potlines are still running.
Under the Wenatchee Works buyback agreement with the BPA, the plant's 641 workers are guaranteed full compensation through June 30.
Rasmussen said the company is committed to keeping its plant in Wenatchee and will be looking at ways to be more efficient.
"The management structure will probably be changed," Rasmussen said.