Rio Tinto Aluminium (RTA) opens another front for savings. The multinational impose a new policy to its suppliers. These will have to show more patience to get paid for goods and services delivered to the business with possibilities of extension from 15 to 45 days longer than the time already in force.
So these are the company’s suppliers will have to turn in some cases to their financial institution to negotiate new credit lines in order to be able to support this payment policy that will allow the multinational to reduce the pressure on liquidity.
The RTA spokesman in the region, Xuan-Lan Vu, said he understood that this new policy would impact on suppliers, since in any case, they will see the extended period between the delivery of the service or product and payment. It is difficult to set a standard that will apply to all suppliers.
“Evaluations will be made depending on the volume of business between a supplier and the company and according to the time which is currently in force. This period, taking into account the different elements can be extended from 15 to 45 days. A company that currently has a 60-day period may have an additional period of 15 or 20 days to a maximum of 45 more days, “said the spokesman.
This is not the first time that FSA imposes operational modalities its suppliers. Since the acquisition of Alcan, the company did not hesitate to negotiate lower prices. The new policy will have an additional impact for engineering firms that had submitted bids for projects taking into account the delay in payment. By imposing this new policy, the multinational changes rules of the game and with the companies in these situations will bear the costs and in some cases are not insignificant.
The spokesman reminded substantially the same comments that his boss Jacques Étienne trying for several weeks to conclude a new partnership with the region. The news release “Live” reminded Thursday that the aluminum industry is a critical time and is in a situation of reconfiguration in the world. Prices are 25% lower than last year. The third aluminum smelters in the world producing at a loss as those of the region in full swing. Listings RTA, according to the spokesman, intended solely to achieve “robust” production costs.
The announcements in recent weeks have also had a significant impact on the senior staff of the factories. The Daily spoke with company executives who fear for their jobs. Figures circulate and report the abolition of 25% of management positions in regional plants in the short term.
“As we have already mentioned, we will not give figures for staff turnover. We realize that it creates insecurity and we’ll take care of our staff, “repeated the spokesman.
“During the last two waves of layoffs among executives, we always said that when his work was directly attached to the tanks and metal production, our job was pretty solid. Today this is no longer true. No one is immune. Today, the great obsession of managers is being intercepted on arrival to work and to be accompanied by her office security guard, a sign that this is the last day for TSR “, told the Daily a framework employee assigned to the production of aluminum.
According to information previously published by The Daily, RTA deployed a 200 posts removal program for Quebec with a significant proportion to the Montreal headquarters. There was talk of 40 jobs lost in the region. Everything indicates that at the rate things are going, this number will be higher for the Saguenay-Lac-Saint-Jean, but it is impossible to obtain confirmations.