Illegal Lockout at Sherwin Alumina Costs Company Production, Productivity

Glencore Report Reveals Production Down 30 Percent

Contact: Ben Lilienfeld: (832) 556-0370, blilienfeld@usw.org

GREGORY, Texas (February 11, 2015) — The United Steelworkers (USW) today responded to the production report issued by Sherwin Alumina’s parent company, Glencore.

According to data released by Glencore, production at Sherwin’s alumina refinery was 291,000 tonnes during the fourth quarter of 2014, down 8 percent from the previous quarter and down over 30 percent from the same quarter of 2013 when production reached a record 419,000 tonnes.

“The company’s decision to illegally lock out its work force cost it 120,000 tonnes of lost production during the fourth quarter of 2014,” said USW District 13 Director Ruben Garza. “Although the company blamed weak market conditions and power supply issues, the fact is alumina prices reached their peak during the fourth quarter of 2014. Had Sherwin Alumina’s production been at the same level as the prior year, at the average spot price for alumina during the quarter, the company would have an additional
$45 million in revenue.”

“Sherwin Alumina’s temporary replacement work force is apparently working more hours and producing less alumina,” said Ben Lilienfeld, USW District 13 Sub-District Director. “Labor productivity at the refinery was down almost 40 percent from the fourth quarter of 2013, based on hours of work according to the Mine Safety and Health Administration.”

“Again, the union calls on the company to end this illegal lockout, return its skilled, experienced employees to the plant, and to return to the bargaining table,” said Garza.

On October 11, 2014, Sherwin locked out 450 USW members at its alumina refinery in Gregory, Texas. The union’s unfair labor practice charges challenging the legality of the current lockout are being investigated by Region 16 of the National Labor Relations Board.

Click here for the Glencore Corporate Update and Production Report

USW District 13 represents more than 50,000 members in Texas, Arkansas, Louisiana and Oklahoma.
The USW is the largest industrial union in North America, representing workers in a range of industries including metals, mining, rubber, paper and forestry, oil refining, health care, security, hotels, and municipal governments.

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