‘Fears’ for Alcoa jobs

JOHN VAN KLAVEREN
AN ALCOA review of its Point Henry smelter’s “future viability” has thrown 600 jobs into doubt.
Alcoa of Australia managing director Alan Cransberg said Point Henry was unprofitable.
He said “continuing difficult global economic conditions” including metal prices, input costs and exchange rates had driven the review.
Existing conditions made the plant unlikely to be “competitive in the foreseeable future”, Mr Cransberg said.
“One possible outcome is that production….may be curtailed.
“I know this is unsettling news that creates uncertainty for our employees and the many people that depend on the smelter for their livelihood.”
Mr Cransberg said Alcoa hoped to make a decision about the smelter’s future by the end of June when the review was completed.
Opened in 1963, Point Henry produces some 190,000 tonnes of aluminium a year.
Mr Cransberg said the pending carbon tax had not prompted the review.
“The future price on carbon would be an additional cost. However, Point Henry smelter is already losing money.”
Liberal Senator Michael Ronaldson said the review was “further proof” the carbon tax should be dumped.
“The first thing this Gillard Labor Government must do to ensure the survival of the Geelong manufacturing industry is to drop the toxic carbon tax,” Senator Ronaldson said.
He accused federal Geelong Labor MPs Darren Cheeseman and Richard Marles of “refusing to listen to the people of Geelong”.
“The Government must axe this tax immediately,” Mr Ronaldson said.
Mr Marles said the top priority should be the interests of Alcoa employees.
“We should not jump to conclusions because Alcoa has made it clear there’s no decision about the future of Point Henry.
“The attempt by the opposition to play politics with this issue is a disgrace.”
Australian Workers Union Victorian Secretary Cesar Melhem said employees felt betrayed.
“Our members worked tirelessly with local management ensure the place remained efficient and cost-effective.
Mr Melhem called for government financial assistance similar to car industry support.