PITTSBURGH, May 20, 2019 /PRNewswire/ -- The United
Steelworkers (USW) today reacted to an announcement by Arconic
(NYSE: ARNC) that its board of directors have authorized an
additional $500 million in share
repurchases.
"This stock buyback was designed to reward short-term, activist
investor Elliott Management and Arconic's senior executives at the
expense of hourly workers, salaried employees and long-service
retirees," said USW International Vice President Tom Conway, who chairs negotiations with
Arconic. "The priorities of Arconic's senior management are deeply
misplaced and counterproductive, as the company apparently has
enough cash for its executives and stockholders but will not fund
its promises to retirees or provide retirement security to active
employees."
He pointed out that Arconic has proposed to freeze the pension
benefits of certain employees, complaining that its costs are
volatile and that its funding has declined.
"Arconic's board of directors approved this additional stock
buyback at the same time its management was at the bargaining table
demanding concessions in health care and retirement benefits,"
Conway said. "The pension plan would be fully funded at predictable
and modest costs if the company had contributed a fraction of the
$900 million in cash used to
repurchase shares."
The labor agreement between the USW and Arconic, covering 3,400
employees at four plants, was scheduled to expire at midnight on
May 15, 2019, before the parties
agreed to an extension. The union has a right to strike on 24
hours' notice.
The USW negotiating committee is meeting with local union
members this week to review the company's proposals and discuss the
union's next steps.
The USW represents 850,000 men and women employed in
manufacturing, metals, mining, pulp and paper, rubber, chemicals,
glass, auto supply and the energy-producing industries, along with
a growing number of workers in public sector and service
occupations.
More information, contact: Tony Montana –
(412) 562-2592; tmontana@usw.org
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SOURCE United Steelworkers (USW)