The arrangement means that nearly 1,000 employees at the Norwegian site, in scheduled periods, are asked to stay home for five weeks.
On March 26, 2009, Hydro decided to temporarily stop its production of primary aluminium at Sunndal III. It was immediately apparent that the decision – Su III has annual capacity of 100,000 tonnes – would directly impact about 160 jobs. The shutdown was carried out in steps and completed on May 20, almost 40 years to the day after the opening of Su III, which, at the time, was the world’s first modern prebake facility. But the work to find a responsible way to handle the employee situation began as soon as the decision was announced.
After discussions between local management and the employee unions, and in close dialog with the Norwegian Labour and Welfare Administration (NAV), it was decided to carry out a program of rolling layoffs – among all employees at the Sunndal plant.
In the name of solidarity
“We like to say this is about solidarity. We believe the solution we chose was better than one that would have severely impacted a small group of people. With ordinary layoffs, colleagues with low seniority would face uncertainty about their own future. With layoffs that are not concluded within 52 weeks, dismissal is the next step. We have avoided this by choosing rolling layoffs,” says Eivind Torvik, who heads the Sunndal Kjemiske Fagforening (IE) employee trade union.
At the beginning, management at the plant had planned to lay off a group of employees. Rolling layoffs sound simple in theory, but they are demanding in practice. Detailed planning is required so that the plant always has the competence necessary to carry out the day-to-day operations.
Unanimous decision
“We brought up – locally and centrally – how layoffs would be implemented, and our views were understood quickly. We are very concerned about the effects of long-term layoffs on people – and that means that you always lose some competence.
“We discussed the situation in the normal way. With a recommendation from the union board, we were able to call a membership meeting and make clear our demands. The discussion was lively, especially on whether it was right that everyone should have to contribute, but at the end the 450 members voted unanimously for rolling layoffs,” says Torvik.
“With the plan we agreed upon, everyone has their salaries reduced by 38 percent for four of the five weeks they are laid off. In short, everyone contributes, but most people can handle being away from work for five weeks. The alternative – 40 weeks for some – is negative in a much more serious way for those affected.”
From agreement to action
Very few holiday stand-ins were brought in during the summer holiday period at the Sunndal plant in 2009. Instead, operations were carried out by full-time employees working temporarily in the actual jobs.
The 40-week program with rolling layoffs started on August 31. The period was divided into eight groups, each comprising five-week layoff periods. All employee categories were included, and composed so that the necessary competence was available at all times.
When demand for alloyed aluminium products picked up and continued to increase through the end of the year, manning at the shipping docks and in the foundries was adjusted to accommodate the market situation.
Brighter picture
It was still unclear in the first quarter of 2010 how long the layoffs would last. “From our point of view, we are much more positive about the future than we were one year ago, when the picture was completely dark,” says Torvik. “The aluminium industry still has a steep hill to climb, but we are following the movement in the markets every day. And I feel comfortable with the dialog we have with management, locally and centrally. This is important – and good.
“We really have only one agenda, which is to bring Sunndal III back into production. We don’t want to see it closed even longer. We don’t want additional layoffs. This is what we are working toward.”
Although he considers himself an optimist, Torvik lists several things that make the future less clear, such as the large metal inventories that are on site. He adds that the increase in aluminium prices – the metal is sold in US dollars – is less impressive when measured in Norwegian kroner. But he also points out that the Sunndal plant, which has been in operation since 1954, has never had to choose large-scale dismissals as result of too little work.
