Alcoa to Take $50-Million Charge in Fourth Quarter
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PITTSBURGH — Aluminum Co. of America said it will take a fourth-quarter pretax charge of about $50 million because of retroactive profit sharing and bonus provisions contained in new contracts reached with three of its unions.
Alcoa said new 43-month labor agreements have been ratified by its major unions, covering about 15,000 employees at 14 plants. The unions are the United Steelworkers of America, the Aluminum, Brick & Glass Workers International Union and the United Automobile & Aerospace Workers.
Alcoa said the key feature of the agreements is profit sharing for employees covered by the new contracts. It said it estimates that each employee will receive an average of $2,500 for 1988 based on the company’s expected financial performance this year.
The company said the agreements also provide for a 50-cent per hour increase in basic wage rates in November, 1989.
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