May 28, 2019

Arconic has undergone enormous change since the last negotiations. It purchased rings and forgings manufacturer Firth Rixon in 2014, purchased RTI International Metals in 2015, spun-off the upstream aluminum business to Alcoa in 2016, changed its name, found itself in a bitter proxy fight with a hedge fund, sold the Texarkana, Texas rolling mill in 2018, and is now on its fourth CEO in two years.

The Company has now announced that it will split again into two separate companies: (1) an Engineered Products and Forgings businesses, and (2) a Global Rolled Products businesses, including all of the plants covered by the USW Master Agreement. It is not clear at this point which company stays as Arconic and which will be spun off.

This is not the same Company it once was. It is under the control of activist hedge fund investor Elliott Management -- which seems intent on draining every last dollar of cash. In fact, just last week, the Company announced another $500 million stock repurchase program. That is cash that won’t be available to fund pensions or invest in our plants.

Under this ownership and management, nothing is secure. U.S. labor laws and our current contract provide limited protections in the event of a sale of a plant or the Company. Clearly we need more.

The Union has proposed language to protect our contract and jobs in case our plant or the company is sold. It says that in the event of a sale, the buyer is required to: (1) recognize our Union as a condition of the sale, and (2) assume the existing labor agreement or negotiate a new agreement before a sale can be concluded. It also would give the Union the right to extend the contract up to two years, if it chose.

This “successorship” language would protect us from a sale to a hostile buyer that mightrefuse to rehire the plant’s workforce, recognize our Union or agree to our contract. The Company might tell us we don’t need that protection. But history tells us that we do.

Arconic CEO John Plant has a successorship clause in his employment contract, as do the executives and managers covered by the Change in Control Severance Plan, Executive Severance Plan, and Stock Incentive Plan. We should too.

We have a right to have a say in our future – a future that includes a stable job, a fair contract and a secure retirement.

We can get those things if we stick together.