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MANAGING CHANGE
As a major employer in many communities,
there are strong expectations for Alcan to maintain
and enhance employment opportunities. This is particularly
true in remote areas, where the Company is often the
single largest employer, as well as in regions economically
dependent on a limited number of industries.
Alcan operates in a very competitive and rapidly evolving
global business environment. Shifts in markets and technologies
as well as shifts in stakeholder interests themselves
have created an environment in which our operations
must adapt and change. And while change represents opportunity,
it can also be disruptive for communities and those
individuals affected. Effectively managing this change
is a critical issue for Alcan and for the communities
that have traditionally relied on the Company's presence
as an engine of economic and social growth.
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In primary aluminum smelting in particular, investments in
new technology such as smelter prebake technology have resulted
in much more efficient operations, which has helped to reduce
GHG emissions, reduce operational costs and increase the Company's
competitiveness. It has also resulted in significant reductions
in workforce requirements. This presents an obvious challenge
for Alcan and the communities dependent on employment related
to primary aluminum smelting.
Unfortunately, long-term sustainability sometimes means making
some difficult decisions with respect to site closures. The
decision made by Alcan in 2004 to permanently close its Söderberg
potlines at Arvida Works in Quebec, Canada, was a difficult
one for employees and the surrounding community. The case
highlights the challenge of closing older operations that
have higher emissions, while staying competitive in an international
commodity market and addressing issues of local communities
and stakeholders.
Although from a business perspective it was an environmentally
sound and economical decision, the pending closure was a worry
for affected Arvida employees and for the population of the
Saguenay–Lac-Saint-Jean region. Alcan worked in close
cooperation with local stakeholders to evaluate the best opportunities
to avoid laying off any employees while minimizing impacts
on the community's continued prosperity.
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