Rio Tinto (RT) uses execution rationalization plan by undertaking a restructuring of its regional operations through the consolidation of its factories into a single administrative entity. This exercise could lead to the disappearance of several executive positions as announced in The Daily in February.
The multinational staff was informed of the change at a meeting held on Thursday morning. Factories Alma, Grande-Baie, Laterriere and Jonquiere Complex come under a single administrative entity called Aluminerie Saguenay-Lac-Saint-Jean.
Three management units
the multinational spokesman, Xuan-Lan Vu points out that this reorganization leads to the creation of an aluminum smelter of 1.3 million tonnes. This new entity is divided into three distinct poles “that will allow us to have a more agile and flexible organization, and ensure simplified management.”
These three new management units are as follows: Aluminerie Saguenay-Lac-Saint-Jean which comprises the Alma plant, Great Bay and AP60; the Jonquiere Complex which includes the related services (port facilities, rail services, the west electrolysis center in Arvida, the plant processing the lute, the center of anode products, etc.), and the Electric Power Division .
Councillor RT to media relations in the region agreed that the new entity will not increase the production of gray metal in the region. “But on the international scene, the big players like China and the Middle East are now on our markets and have plants of over one million tonnes. By having a new organization that is competitive, it is better positioned for the future. Management is simplified. When it is known that aluminum prices are lowest, we must organize to be able to compete. (…) For us as a producer of aluminum, creating three management centers, we make sure to have an organization that responds to the current environment and will position us for the future. We must act now for the future, “insists Ms. Vu.
Impact on employment
The Rio Tinto spokesman does not move about the impact this reorganization of senior staff. “This is positive news for us because we really positioned competitively for the future, she pleads. It is certain that there are movements (staff) that can take place. These are times of change for everyone, but we take care of our world as we have always done, “she said, mentioning that labor on the floor will not be affected, because the collective agreements in place are followed.
It will take some weeks to know the real impact of this restructuring. “Last month, M. (Arnaud Soirat), RT President Aluminium, announced a restructuring as well. When reorganizes, it is by hierarchical level, said regional spokesman. Today (Thursday), it was announced the organization for the primary metal and the three poles of management and we will look at in the coming months, what changes. Each manager will announce its teams. “(In collaboration with Denis Villeneuve)
The government did not mingle
For now, Quebec will not intervene in the decision of Rio Tinto to consolidate its facilities in Saguenay-Lac-Saint-Jean under one administrative entity, but it will follow closely developments in the case concerning the impact on employment, if one trusts the comment made by the Minister of Economy, Science and Innovation, Dominique Anglade.
“The aluminum industry through a difficult time and businesses must ensure their competitiveness. In this sense, the government is taking concrete steps to promote the growth of this industry, especially with the Quebec strategy for development of aluminum which provides for measures of $ 32.5 million over three years. This is a business decision so that it remains competitive and continue its operations with thousands of jobs attached to it. We monitor and we are in regular contact with RT to accompany him and his workers, “explained Minister Anglade via his communications director, Jolyane Pronovost.