Rockdale,TX Class of 1965
That’s conjecture. What’s fact is that 660 additional employees, hourly and salaried, will lose their jobs by year’s end.
That’s in addition to the 151 Alcoans—39 with Rockdale addresses—already laid off this summer.
John Thuestad, company president, announced the decision Tuesday morning, citing the same reasons—reliable power supply problems and market conditions—which led the company to shut down three of the plant’s six potlines in June.
“The worst thing is, for the last two months we’ve been running well and setting records,” Royce Haws, Rockdale Operations location manager, said. “We set three-potline records for efficiency and metal purity. Our employees did everything we asked them to do, and more. But that just couldn’t offset the high cost of production.
“Things happened beyond our control,” Haws said. “The demand for metal has dropped. Price of aluminum (in dollars per metric ton) was $3,200 in May. Today (Tuesday) it’s $2,370. We’re the plant with the highest costs. We’re the one getting shut down.”
140 jobs stay
Rockdale Operations’s atomizer and anode facilities will remain open, salvaging 140 jobs for the time being.
“Honestly, we don’t know how long they will stay open,” Haws said. “That will depend on the market.”
Also, Alcoa will continue to honor its power contact with lawsuit adversary Luminant and purchase 83 percent of the power generated by Luminant’s Sandow Unit 4, even though it won’t use the electricity to produce aluminum.
“We will sell the power on the open market,” Jim Hodson, Alcoa spokesman, said.
‘Over 1,000’ lost
Tuesday’s news was, of course, devastating for United Steelworkers Local 4895.
“It’s just a shame that these two companies couldn’t get together and find a solution to keep Rockdale Operations going,” David Edmonds, Local 4895 president, said. “I think where this was really all lost was when the first three lines went down. I think this plant could have made money for Alcoa.”
The 660 layoff figure includes between 100 and 140 Local 4895 members from the June layoff announcement. Those will still be announced Oct. 19, according to Alcoa.
“When you add it all together, the union members, salaried and the contracting people, it’s going to be over 1,000 employees, somewhere between 1,000 and 1,040, who are losing their jobs,” Edmonds said.
Seniority, and qualifications, will determine which Local 4895 members remain at Rockdale Operations to work in the anode facility and atomizer. “We’ve been told the anode facility will be open for seven months and they’ll keep the atomizer going as long as there are orders for atomized aluminum,” Edmonds said.
Sub pay
All the USW members losing their jobs as the result of Tuesday’s announcement have at least two years seniority and will quality for some form of “sub pay” unemployment benefits.
Alcoa calculated some high-seniority union members could draw as much as 75 percent of their current paychecks for up to two years.
“I don’t know if it’s quite that much but it’s a pretty sizeable percentage for people with that much seniority,” Edmonds said.
It will be hectic around the Local 4895 Union Hall for quite some time. “We’ve never done this before. This is all new,” Edmonds said. “Our members have a lot of questions. I’ve got a lot of questions. It’s a shame.”
Local 4895 will remain “as long as we have members to represent,” according to Edmonds.
“We’ll do the job we’re supposed to do,” he said.
Edmonds said he looked at Rockdale with new eyes as he drove to the union hall on Tuesday. “I looked and wondered what this drive is going to look like a year or so from now when all the Sandow 5 construction people have left,” he said. “Are you going to need all these restaurants? Are you going to need all these places to get a haircut? What’s this town going to look like?”
Lines going down
Haws said one potline will be shut down by Friday with the final two following in two week intervals. That will mark the first time since November, 1952, for metal production to cease, indefinitely, at Rockdale Operations.
“We’ve already begun taking the lines down,” Haws said Tuesday afternoon.
Then what? “We’ll dig the last three potlines out and get them ready for a re-start, if and when that happens. We already have the first three ready to go.”
“Those pots will go two to three years without any appreciable deterioration,” he said.
‘No crystal ball’
What would need to happen for Alcoa’s Rockdale Operations to come back from the dead?
One, or both, of two big “ifs.”
“We need to win our ongoing lawsuit against Luminant and the world economy needs to improve, specifically the aluminum market,” Haws said.
“If we can make money producing metal at Rockdale, it will happen again,” he said. “But there’s no crystal ball. We can’t predict what’s going to happen on either of those fronts.”
Alcoa has sued Luminant in 20th District Court, asking a half-billion dollars in damages and seeking the court to order it be charged a fixed price for power by Luminant when Sandow 4 is not operating.
Luminant responded by charging Alcoa with attempting to violate the federal court consent decree which ended long-standing litigation over pollution allegations and opened the way for construction of Luminant’s Sandow 5 power plant.
The lawsuit could drag on for many months, even years. The ball is now in Alcoa’s court as the aluminum company must draft a federal court response replying to Luminant’s allegations concerning the consent decree.
As for an economic turnaround Haws, a self-confessed optimist, noted: “Things got bad in a short amount of time, they could improve just as quickly.”
Luminant response
Since June, Alcoa has said the unreliability of Sandow Unit 4, at times forcing the company to purchase electricity from the power grid at prices “100 times the local power supply,” forced its hand on the layoffs.
Luminant disagrees.
“Unfortunately it appears Alcoa is once again refusing to take responsibility for its business decisions,” Tom Kleckner, Luminant spokesman, said.
“Nothing at Sandow has changed since Alcoa’s last round of layoffs that could have precipitated Alcoa’s decision to curtail the remaining production at its Rockdale smelter,” Kleckner said.
“Our Sandow power plant has been operating smoothly and without any major issues since early July. As a result of Luminant’s consistent efforts, there have been no new significant power generation concerns or new pricing issues, even after Hurricane Ike,” he said.
“We believe Alcoa has a history of using layoffs like this as a vehicle for managing costs and driving the company’s profitability. Alcoa should acknowledge its independent decisions instead of blaming power supply issues and unspecified ‘market conditions.’ Since 2000, Alcoa’s annual reports show their global employment has decreased by 35,000 employees,” Kleckner said.
Largest employer
Once Sandow Power Plant Unit 5 is up and running in less than a year, it’s likely Luminant will be the area’s largest employer.
About 125 persons are employed in Luminant’s 3 Oaks Mine in Lee and Bastrop counties and about 200 total, including contractors, are expected to be employed in the Sandow 4 and Sandow 5 power plants.
http://www.rockdalereporter.com/News/alcoashuttingdown100208.htm
That’s in addition to the 151 Alcoans—39 with Rockdale addresses—already laid off this summer.
John Thuestad, company president, announced the decision Tuesday morning, citing the same reasons—reliable power supply problems and market conditions—which led the company to shut down three of the plant’s six potlines in June.
“The worst thing is, for the last two months we’ve been running well and setting records,” Royce Haws, Rockdale Operations location manager, said. “We set three-potline records for efficiency and metal purity. Our employees did everything we asked them to do, and more. But that just couldn’t offset the high cost of production.
“Things happened beyond our control,” Haws said. “The demand for metal has dropped. Price of aluminum (in dollars per metric ton) was $3,200 in May. Today (Tuesday) it’s $2,370. We’re the plant with the highest costs. We’re the one getting shut down.”
140 jobs stay
Rockdale Operations’s atomizer and anode facilities will remain open, salvaging 140 jobs for the time being.
“Honestly, we don’t know how long they will stay open,” Haws said. “That will depend on the market.”
Also, Alcoa will continue to honor its power contact with lawsuit adversary Luminant and purchase 83 percent of the power generated by Luminant’s Sandow Unit 4, even though it won’t use the electricity to produce aluminum.
“We will sell the power on the open market,” Jim Hodson, Alcoa spokesman, said.
‘Over 1,000’ lost
Tuesday’s news was, of course, devastating for United Steelworkers Local 4895.
“It’s just a shame that these two companies couldn’t get together and find a solution to keep Rockdale Operations going,” David Edmonds, Local 4895 president, said. “I think where this was really all lost was when the first three lines went down. I think this plant could have made money for Alcoa.”
The 660 layoff figure includes between 100 and 140 Local 4895 members from the June layoff announcement. Those will still be announced Oct. 19, according to Alcoa.
“When you add it all together, the union members, salaried and the contracting people, it’s going to be over 1,000 employees, somewhere between 1,000 and 1,040, who are losing their jobs,” Edmonds said.
Seniority, and qualifications, will determine which Local 4895 members remain at Rockdale Operations to work in the anode facility and atomizer. “We’ve been told the anode facility will be open for seven months and they’ll keep the atomizer going as long as there are orders for atomized aluminum,” Edmonds said.
Sub pay
All the USW members losing their jobs as the result of Tuesday’s announcement have at least two years seniority and will quality for some form of “sub pay” unemployment benefits.
Alcoa calculated some high-seniority union members could draw as much as 75 percent of their current paychecks for up to two years.
“I don’t know if it’s quite that much but it’s a pretty sizeable percentage for people with that much seniority,” Edmonds said.
It will be hectic around the Local 4895 Union Hall for quite some time. “We’ve never done this before. This is all new,” Edmonds said. “Our members have a lot of questions. I’ve got a lot of questions. It’s a shame.”
Local 4895 will remain “as long as we have members to represent,” according to Edmonds.
“We’ll do the job we’re supposed to do,” he said.
Edmonds said he looked at Rockdale with new eyes as he drove to the union hall on Tuesday. “I looked and wondered what this drive is going to look like a year or so from now when all the Sandow 5 construction people have left,” he said. “Are you going to need all these restaurants? Are you going to need all these places to get a haircut? What’s this town going to look like?”
Lines going down
Haws said one potline will be shut down by Friday with the final two following in two week intervals. That will mark the first time since November, 1952, for metal production to cease, indefinitely, at Rockdale Operations.
“We’ve already begun taking the lines down,” Haws said Tuesday afternoon.
Then what? “We’ll dig the last three potlines out and get them ready for a re-start, if and when that happens. We already have the first three ready to go.”
“Those pots will go two to three years without any appreciable deterioration,” he said.
‘No crystal ball’
What would need to happen for Alcoa’s Rockdale Operations to come back from the dead?
One, or both, of two big “ifs.”
“We need to win our ongoing lawsuit against Luminant and the world economy needs to improve, specifically the aluminum market,” Haws said.
“If we can make money producing metal at Rockdale, it will happen again,” he said. “But there’s no crystal ball. We can’t predict what’s going to happen on either of those fronts.”
Alcoa has sued Luminant in 20th District Court, asking a half-billion dollars in damages and seeking the court to order it be charged a fixed price for power by Luminant when Sandow 4 is not operating.
Luminant responded by charging Alcoa with attempting to violate the federal court consent decree which ended long-standing litigation over pollution allegations and opened the way for construction of Luminant’s Sandow 5 power plant.
The lawsuit could drag on for many months, even years. The ball is now in Alcoa’s court as the aluminum company must draft a federal court response replying to Luminant’s allegations concerning the consent decree.
As for an economic turnaround Haws, a self-confessed optimist, noted: “Things got bad in a short amount of time, they could improve just as quickly.”
Luminant response
Since June, Alcoa has said the unreliability of Sandow Unit 4, at times forcing the company to purchase electricity from the power grid at prices “100 times the local power supply,” forced its hand on the layoffs.
Luminant disagrees.
“Unfortunately it appears Alcoa is once again refusing to take responsibility for its business decisions,” Tom Kleckner, Luminant spokesman, said.
“Nothing at Sandow has changed since Alcoa’s last round of layoffs that could have precipitated Alcoa’s decision to curtail the remaining production at its Rockdale smelter,” Kleckner said.
“Our Sandow power plant has been operating smoothly and without any major issues since early July. As a result of Luminant’s consistent efforts, there have been no new significant power generation concerns or new pricing issues, even after Hurricane Ike,” he said.
“We believe Alcoa has a history of using layoffs like this as a vehicle for managing costs and driving the company’s profitability. Alcoa should acknowledge its independent decisions instead of blaming power supply issues and unspecified ‘market conditions.’ Since 2000, Alcoa’s annual reports show their global employment has decreased by 35,000 employees,” Kleckner said.
Largest employer
Once Sandow Power Plant Unit 5 is up and running in less than a year, it’s likely Luminant will be the area’s largest employer.
About 125 persons are employed in Luminant’s 3 Oaks Mine in Lee and Bastrop counties and about 200 total, including contractors, are expected to be employed in the Sandow 4 and Sandow 5 power plants.
http://www.rockdalereporter.com/News/alcoashuttingdown100208.htm
Company still cites power costs, chooses to close Rockdale Operations; reopening an option if power situation, markets improve
By Mike Brown
Reporter Editor
Alcoa is shutting down the final three potlines at Rockdale Operations.
It may be permanent, but company officials have left open a glimmer of hope, that a possibility exists the smelter could re-open in the future if economic conditions improve.
By Mike Brown
Reporter Editor
Alcoa is shutting down the final three potlines at Rockdale Operations.
It may be permanent, but company officials have left open a glimmer of hope, that a possibility exists the smelter could re-open in the future if economic conditions improve.
.
Alcoa Shutting Down Smelter
The Rockdale Reporter Online Edition 2008 September 30
Milam 'devastated' by Alcoa decision
by Jeanne Williams | Cameron Writer 254-697-6481
Temple Daily Telegram – Published: October 1, 2008
ROCKDALE - “We are devastated. Everyone is just reeling right now. We don’t even know what to think or say,” Rockdale Chamber of Commerce president Denice Doss said.
Since the early 1950s, Alcoa’s Rockdale Operations has been the major employer in Milam County.
Rockdale residents on Tuesday morning learned the company would shut down the final three potlines at its Rockdale Operations, leaving more than 600 employees out of work.
“We are starting to think about all the people it’s going impact, and that’s not the actual employees, but the businesses out there,” Mrs. Doss said. “It’s devastating for all. This has happened so fast. I spoke to people this morning who had just bought a new house or a car. They were not expecting any of this.”
Cameron Chamber of Commerce manager Brandy McLerran said with Alcoa’s Rockdale Operations closing the remaining three smelters, “We know that there will be a significant impact to our economy. Yes, our neighbors in Rockdale will have a much larger impact, but the entire county will be affected as well. Alcoa has been a landmark of Milam County for 54 years, and to lose that sort of job base for one county is devastating.”
Alcoa’s announcement was “not totally unexpected” to County Judge Frank Summers.
“Personally, I felt that Alcoa would be shutting down in the near future when they sold their control over their power costs,” Summers said. “Seems to me perhaps even a planned shutdown, and power is now the excuse.”
Alcoa once owned and operated three lignite-fired electrical generating plants and a lignite coal mine to fuel the processor, which at peak performance produced aluminum ingots with eight potlines, but “they decided to sell both and now blame power costs as issue for their closing,” Summers said. “Just does not make a lot of sense to me, unless it was part of an overall plan.”
Bottom line is that Alcoa is in business to make money, Summers said. The Rockdale plant is more than 50 years old; thus, “the reality in industry is that industrial plants simply do not have a realistic productive life span of 50 years.
“If it were not now, eventually we would have to face the fact that the Rockdale Alcoa plant would reach the end of its productive life span,” Summers said. “That time has come.”
Summers said he was hopeful the plant would be brought back on line in the future. He also praised Alcoa as being a good corporate neighbor.
“Many families in the area were raised on income from the Rockdale plant,” Summers said.
Dave Edmonds, president of United Steel Workers of America Local 4895, said the announcement ultimately was a shock, “but I could kind of see this coming with the other three potlines coming down. Rockdale Operations was making money and was competitive in the aluminum market when they were running six potlines. When they went down to three, we all knew it was going to be a struggle.”
Unfortunately, metal prices have dropped, the world economy is in a mess, and Alcoa and Luminant have not been able to reach any kind of agreement on a longtime power source, he said.
“It is a sad day for all the steelworkers and all their families and all of Central Texas. I can only imagine the negative effect it’s going to have,” Edmonds said.
jwilliams@temple-telegram.com
http://www.tdtnews.com/story/2008/10/01/52659/
by Jeanne Williams | Cameron Writer 254-697-6481
Temple Daily Telegram – Published: October 1, 2008
ROCKDALE - “We are devastated. Everyone is just reeling right now. We don’t even know what to think or say,” Rockdale Chamber of Commerce president Denice Doss said.
Since the early 1950s, Alcoa’s Rockdale Operations has been the major employer in Milam County.
Rockdale residents on Tuesday morning learned the company would shut down the final three potlines at its Rockdale Operations, leaving more than 600 employees out of work.
“We are starting to think about all the people it’s going impact, and that’s not the actual employees, but the businesses out there,” Mrs. Doss said. “It’s devastating for all. This has happened so fast. I spoke to people this morning who had just bought a new house or a car. They were not expecting any of this.”
Cameron Chamber of Commerce manager Brandy McLerran said with Alcoa’s Rockdale Operations closing the remaining three smelters, “We know that there will be a significant impact to our economy. Yes, our neighbors in Rockdale will have a much larger impact, but the entire county will be affected as well. Alcoa has been a landmark of Milam County for 54 years, and to lose that sort of job base for one county is devastating.”
Alcoa’s announcement was “not totally unexpected” to County Judge Frank Summers.
“Personally, I felt that Alcoa would be shutting down in the near future when they sold their control over their power costs,” Summers said. “Seems to me perhaps even a planned shutdown, and power is now the excuse.”
Alcoa once owned and operated three lignite-fired electrical generating plants and a lignite coal mine to fuel the processor, which at peak performance produced aluminum ingots with eight potlines, but “they decided to sell both and now blame power costs as issue for their closing,” Summers said. “Just does not make a lot of sense to me, unless it was part of an overall plan.”
Bottom line is that Alcoa is in business to make money, Summers said. The Rockdale plant is more than 50 years old; thus, “the reality in industry is that industrial plants simply do not have a realistic productive life span of 50 years.
“If it were not now, eventually we would have to face the fact that the Rockdale Alcoa plant would reach the end of its productive life span,” Summers said. “That time has come.”
Summers said he was hopeful the plant would be brought back on line in the future. He also praised Alcoa as being a good corporate neighbor.
“Many families in the area were raised on income from the Rockdale plant,” Summers said.
Dave Edmonds, president of United Steel Workers of America Local 4895, said the announcement ultimately was a shock, “but I could kind of see this coming with the other three potlines coming down. Rockdale Operations was making money and was competitive in the aluminum market when they were running six potlines. When they went down to three, we all knew it was going to be a struggle.”
Unfortunately, metal prices have dropped, the world economy is in a mess, and Alcoa and Luminant have not been able to reach any kind of agreement on a longtime power source, he said.
“It is a sad day for all the steelworkers and all their families and all of Central Texas. I can only imagine the negative effect it’s going to have,” Edmonds said.
jwilliams@temple-telegram.com
http://www.tdtnews.com/story/2008/10/01/52659/
LOSING ALCOA
2008-10-06 From KMIL Radio, Cameron, TX website: http://www.kmil.com/story.php?id=4664
(ROCKDALE) As the shock of losing more than 1,000 jobs in less than a year begins to wear off, community leaders in Rockdale are finally able to shift their sights toward the future.
Alcoa announced last Tuesday it would lay off 660 employees and shut down the smelter at its Rockdale plant.
Denice Doss, president of the Rockdale Chamber of Commerce said "It has been a real circus."
But now city leaders, along with Alcoa workers who will be jobless by Christmas, are preparing to spend the next few weeks laying out a strategy to save their city. On the surface, they appear optimistic, but they acknowledge that ideas are scarce.
Doss said "Even though some people don`t believe it, it will be OK." She said she has already heard some positive comments that we are going to move forward. She said We don`t exactly know what that means, but we do know that it will be OK.
Officials from city and county government, the Rockdale school district and the Chamber of Commerce are planning meetings to begin studying the impact of losing that many jobs.
Milam County Judge Frank Summers said officials are trying to formulate a plan. Summers said if 90 percent of the money being spent comes from Alcoa, then what is going to happen? How many houses will be vacant?"
Alcoa was the largest employer in the city for decades. At the beginning of the year, it had more than 1,000 workers but laid off about 160 in the past two months. The 660 layoffs announced Tuesday will be completed by December.
In addition to the 820 displaced Alcoa employees, more than 200 contract workers are also expected to lose their jobs.
The starting pay at Alcoa was more than $18 an hour, plus benefits.
Prospects for those who lost their jobs are relatively strong according to Cindy Jerman, director of the Central Texas Workforce Center`s Rockdale office -- as long as the people don`t mind moving or commuting a long way to work.
Reports of a job fair organized by the workforce center to be held in November prompted more than a dozen employers from around the region to contact Jerman late last week.
Jerman said none of those potential employers come from Rockdale, however, so the situation may be dire for those who do not want to move.
"The reality is, there are no jobs in Rockdale that will be for them," Jerman said. "Nothing will match their salary or skills."
David Edmonds, president of the Local 4895 of the United Steelworkers union, said laid-off employees would get the first shot at jobs at other Alcoa plants across the country. Some workers, he said, will move to Tennessee to try to find jobs at that plant.
The large number of people leaving will likely result in a lot of vacant houses, officials said, and drive down housing prices. That, in effect, will lower the tax income for government agencies, in addition to the direct ad valorem taxes paid by the plant.
Doss said officials were researching other small cities that have suffered from plant closings and hope to learn how to handle the job losses. A few leaders from similar towns have called to express sympathy, she said, and Rockdale will reach out to them for advice.
2008-10-06 From KMIL Radio, Cameron, TX website: http://www.kmil.com/story.php?id=4664
(ROCKDALE) As the shock of losing more than 1,000 jobs in less than a year begins to wear off, community leaders in Rockdale are finally able to shift their sights toward the future.
Alcoa announced last Tuesday it would lay off 660 employees and shut down the smelter at its Rockdale plant.
Denice Doss, president of the Rockdale Chamber of Commerce said "It has been a real circus."
But now city leaders, along with Alcoa workers who will be jobless by Christmas, are preparing to spend the next few weeks laying out a strategy to save their city. On the surface, they appear optimistic, but they acknowledge that ideas are scarce.
Doss said "Even though some people don`t believe it, it will be OK." She said she has already heard some positive comments that we are going to move forward. She said We don`t exactly know what that means, but we do know that it will be OK.
Officials from city and county government, the Rockdale school district and the Chamber of Commerce are planning meetings to begin studying the impact of losing that many jobs.
Milam County Judge Frank Summers said officials are trying to formulate a plan. Summers said if 90 percent of the money being spent comes from Alcoa, then what is going to happen? How many houses will be vacant?"
Alcoa was the largest employer in the city for decades. At the beginning of the year, it had more than 1,000 workers but laid off about 160 in the past two months. The 660 layoffs announced Tuesday will be completed by December.
In addition to the 820 displaced Alcoa employees, more than 200 contract workers are also expected to lose their jobs.
The starting pay at Alcoa was more than $18 an hour, plus benefits.
Prospects for those who lost their jobs are relatively strong according to Cindy Jerman, director of the Central Texas Workforce Center`s Rockdale office -- as long as the people don`t mind moving or commuting a long way to work.
Reports of a job fair organized by the workforce center to be held in November prompted more than a dozen employers from around the region to contact Jerman late last week.
Jerman said none of those potential employers come from Rockdale, however, so the situation may be dire for those who do not want to move.
"The reality is, there are no jobs in Rockdale that will be for them," Jerman said. "Nothing will match their salary or skills."
David Edmonds, president of the Local 4895 of the United Steelworkers union, said laid-off employees would get the first shot at jobs at other Alcoa plants across the country. Some workers, he said, will move to Tennessee to try to find jobs at that plant.
The large number of people leaving will likely result in a lot of vacant houses, officials said, and drive down housing prices. That, in effect, will lower the tax income for government agencies, in addition to the direct ad valorem taxes paid by the plant.
Doss said officials were researching other small cities that have suffered from plant closings and hope to learn how to handle the job losses. A few leaders from similar towns have called to express sympathy, she said, and Rockdale will reach out to them for advice.
