650 Alcan plant workers told their jobs are safe

Jan 22 2009 by Peter McCusker, The Journal

THE 650 workers at the UK’s largest aluminium plant have been assured they will not be affected by the job cuts announced by their parent company.

Rio Tinto Alcan, which owns the Alcan plant at Lynemouth, near Ashington in Northumberland, said last December it planned to axe 14,000 of its 97,000 posts worldwide to cut costs as demand fell.

It said 1,100 jobs would be lost in its aluminium business.

But workers at the Lynemouth smelter and nearby power plant will not be affected by the cutbacks.

Alcan Aluminium UK corporate affairs director John McCabe said: “Despite the uncertainty caused by the global economic downturn, the workforce at Lynemouth has responded magnificently. Naturally, there is great relief that jobs at Lynemouth will not be cut as part of Rio Tinto’s response to the current market situation.

“The important thing for all of us at Lynemouth is to continue doing what we do best, working safely while achieving manufacturing excellence.

“That way, we will be better placed to emerge from the current downturn with a sustainable long-term future for the plant.”

GMB regional organiser Chris Preston, who represents most of the workers at the plant, said: “This is very positive news for our members.

“News that jobs are to be safeguarded at a time when there is so much uncertainty across the economy is very good news.”

Rio Tinto is being squeezed by sharp falls in commodity prices and huge declines in demand for consumer products, such as cars, which is reducing aluminium demand. And the company has moved to quell fears that an impending legal battle in the European Court of Justice over emissions from Lynemouth threatens its future.

Yesterday The Journal reported that the European Commission was taking the UK Government to court, arguing Alcan was in breach of its operating licence by failing to reduce emissions.

The UK Government is backing Alcan, saying the plant’s coal-fired power station is an integral part of aluminium production and should be excluded from the EC Large Combustion Plants Directive (LCPD).

Mr McCabe said: “Lynemouth’s case for being excluded from the directive is based on our environmental credentials.

“The environmental impact of Lynemouth Power Station is acceptable to all regulatory authorities and the plant is fully compliant with all appropriate environmental legislation. European Commission officials have told us that if they were writing the LCPD today, they would incorporate an exemption for Lynemouth based on our outstanding and unique environmental credentials.”

CBI North East regional director Sarah Green said: “Lynemouth has attracted significant investment in recent years for initiatives in environmental improvement, energy efficiency and improved productivity.

“The plant is in great shape and it’s very important for the region that such a major employer and contributor to our local economy is not exposed to unnecessary regulation, particularly during the current global economic downturn.”