Layoffs at Columbia Falls Aluminum plant a probability

As early as July 21, there could be extensive layoffs at Columbia Falls Aluminum Company. And the issue boils down to the cost of doing business.

The city's second largest employer issued a press release on Friday indicating that it is "exploring the possibility of reducing its aluminum production at the Columbia Falls smelter by as much as two-thirds."

According to Haley Beaudry, Manager of External Affairs at CFAC, it's a federal requirement that the company give at least a 60-day notice of layoffs. The company notified the workforce of the possibility of such a curtailment last Wednesday (May 21). Notice to the Aluminum Workers Trades Council let the union know workers could be laid off on or after the 60-day notice period elapses.

When considering the cutbacks, Glencore AG — the Swiss-based company that owns the plant — is looking at factors such as the cost of making aluminum, the price of power and price of aluminum, according to Beaudry.

The analysis of the likely course of action and the determination of its scope and timing are in process. The release said this measure is being considered due to the persistent and unmoderating high cost of energy as well as higher than normal costs of raw materials contrasted by the persistence of stagnant worldwide price of aluminum.

This curtailment, if it occurs, would result in the departure of some bargaining unit (union) and salaried employees.

The 53-year-old CFAC currently has about 350 employees, according to Beaudry. About two-thirds of them are union workers.

All five potlines at the plant were in operation in the fall of 2000, when employment was more than 500.

"Since then there have been several curtailments and restarts," Beaudry explained.

Historically, before the plant was more efficient, there were — at times — more than 1,700 CFAC employees.

Read more about the potential CFAC layoffs in the May 29 issue of the Hungry Horse News.