Smelter workers get another 10 months of full pay
Thursday, February 20, 2003 8:55 AM PST
By Associated Press
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E-mail this articleWENATCHEE, Wash. (AP) -- Chelan County Public Utility District commissioners have approved a power sales contract extension that allows Alcoa's Wenatchee Works smelter workers to continue drawing paychecks for at least 10 more months.
The aluminum plant has been idle for 19 months, but 390 workers continue to be paid under a revenue sharing agreement with the PUD that will last at least until Jan. 1, 2004.
The previous contract had allowed either side to end the arrangement with 60 days' notice.
Wenatchee Works manager Bob Wilt said Alcoa asked for the amendment because the company has no plans to end the contract early. Making sure the PUD won't give up on the deal provides Alcoa a level of certainty it needs for financial planning, he said.
Whether the smelter will be restarted depends on better market conditions, he said.
The plant ceased production for the first time in 49 years on July 1, 2001, because of low prices for aluminum and California's need for electricity.
Under a contract struck that same month, the PUD began selling Alcoa's 23 percent share of power produced at Rocky Reach Dam at market prices in exchange for Alcoa's guaranteeing a minimum number of jobs at the plant.
The agreement was extended in September 2001 and in January 2002. In June 2002, it was extended indefinitely with either side able to terminate with 60 days' notice.
Carol Wardell, PUD general counsel, said the agreement benefits Wenatchee's economy by keeping the Alcoa jobs.
The PUD has netted $40 million off Alcoa power between July 2001 and November 2002 and paid Alcoa half of that under the contract, she said.
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