Thursday, June 10, 2010

Alcoa (NYSE:AA) Contract to be Voted on Soon

The proposed contract between Alcoa (NYSE:AA) and the United Steelworkers union could be voted on as early as June 24, according to Steelworkers representatives.

Included in the contract would be a 5 percent increase in wages over a four-year period, which will kick in over the last two years of the contract; being phased in during that period.

If the contract is agreed to by June 30, a signing bonus of $1,250 will be received from all the workers. The offer is to avert a strike, which last was held in 1986.

For the first two years of the agreement, union workers would receive $2,750 in a one-time payment instead of an increase in wages.

The health plan, which was one of the major sticking points, would have employee contributions increase by 47 percent a week in the fourt year of the contract, and will start off at $32 a week in the first year.

Alcoa is the largest U.S. producer of aluminum.

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