Alcoa (NYSE:AA), United Steelworkers Extend Deadline for Contract Talks

In hopes of coming to an agreement, Alcoa (NYSE:AA) and the United Steelworkers Union agreed to extend the deadline for contract talks another 11 hours, giving the union until noon Eastern time Tuesday to make a decision.

Alcoa spokesman Kevin Lowery said that this was the “last, best and final offer” the aluminum producer would make.

After net losses of $1.23 billion over the last two years, Alcoa must cut costs in order to be competitive, and have made their offer based on that reality.

Much of that practical focus of cutting costs were in the offer for health care, where Alcoa wanted to add workers to their plan which they said would be 45 percent less expensive than the union plan.

Some union families may have had to pay in some cases three times what they paid now, according to the union.

Alcoa (NYSE:AA), United Steelworkers Union Contract Talks Continue

Alcoa (NYSE:AA) and the United Steelworkers Union are hoping to hammer out an agreement by the end of Memorial Day weekend, and have a contract in place starting Tuesday. Their currenct contract ends on Monday.

According to Alcoa, the major issues being discussed are health care, compensation and more flexibility in the workplace.

The healthcare discussions may be the most intense and difficult to navigate, as the proposed changes would make it more expensive for workers, who now pay only $87 a month.

Concerning the compensation package, Alcoa asked for changes for new employees in relationship to retiree medical benefits. Wages for new employees would remain the same.

Close to 5,400 employees in the U.S. are covered by the contract.