the film forum library tutorial contact

Speakers Address National Security Risk of Closing Intalco by Brent Lindquist Lynden Tribune, April 23, 2020

Thursday rally drew more than 150 people

FERNDALE -- At about 1:15 p.m. Wednesday, Shawn Creasey and about 700 of his fellow workers at Alcoa Intalco Works found out they would be laid off.

Alcoa is shuttering its Intalco smelter by July.

Creasey is in his second stint at Intalco, having taken a voluntary layoff in 2008 to let one of the younger people take over. He said it's a good job to have and that the leaders can figure something out.

"I'm getting close to retirement, and I just want it to stay running for the younger people," Creasey said. "It raised my kids and it should raise more people's kids. It's still a viable plant."

Creasey was joined by more than 150 people who gathered near Ferndale's Pioneer Pavilion Thursday morning for a rally organized by State Sen. Doug Ericksen.

Several speakers addressed the crowd, and the national security risk of relying on foreign aluminum was a prominent topic.

"We cannot understate how important it is to have American jobs building American materials for our national safety and our national security," Ericksen said in his opening remarks.

Ericksen said bringing American jobs home is important, but keeping American jobs that are already here is important as well. He said only seven aluminum smelters operate in the United States versus 140 in China. Ericksen said getting the issue to a national level is the way forward to keep Intalco open, and he has been in contact with the White House since the announcement in order to get it there.

State Rep. Luanne Van Werven thanked participants for doing their best to make the rally a safe event due to the COVID-19 pandemic, asking participants to maintain social distancing.

Van Werven also emphasized the national security risk of outsourcing aluminum production, and said she is confident that leaders will work hard to keep Intalco open.

"I have confidence that together, we can do everything we can, and we will, to make sure that Intalco stays operational," she said.

Brian Urban with International Association of Machinists and Aerospace Workers Local Lodge 2379 said for every one job at Intalco, three are created in the community. He said China's aluminum subsidies give the country an unfair advantage against the United States.

"We must fight this now or we will suffer much more later on down the road," Urban said. "We want American jobs. We want American products."

James McKinney, a retired U.S. Army Foreign Area and Intelligence Officer, related the closure indirectly to the COVID-19 pandemic.

"It's driving down prices, and while it's driving down prices, the Chinese Communist Party is increasing their production of aluminum to keep prices down," he said.

Ericksen said the virus has exposed the further need to keep jobs close to home, and that while the closure is hitting families and jobs hard, it's also a nationwide issue.

"When you're in a crisis, like we're in a crisis now, we need to work together as one unit to be able to save this facility," Ericksen said. "I'm not going to sugar-coat it and say that it's a guaranteed deal and that we're able to get this done. It's going to take a lot of hard work and it's going to be very hard to do it because they've made the decision, and getting the decision changed is very, very difficult, but we are not going to give up."

Van Werven said Ferndale Police Chief Kevin Turner told her the event was in violation of Gov. Jan Inslee's Stay Home, Stay Healthy order, but he would not be shutting it down and that he would observe the event from the back. Van Werven said they didn't know how many people to expect at the rally.

Ferndale Mayor Greg Hansen said in a Thursday Facebook post that he would not be attending the rally.

"While my heart is with the workers during this difficult time, I will not be attending," Hansen wrote. "The rally is in violation of the Stay Home, Stay Healthy order and presents a danger of causing another wave of infections in Ferndale. I urge anyone who is considering attending to utilize social distancing as much as possible. I will instead be using the time to reach out to our federal and state elected officials to fight like hell for our Ferndale jobs."

According to Alcoa, the coming shutdown is due to Intalco's inability to compete with foreign aluminum; the smelter reportedly lost $24 million in the first quarter of 2020.

In May 2016, Alcoa struck a deal with Bonneville Power Administration to improve electricity pricing from BPA to Intalco. The facility was facing curtailment then, but it was delayed due to the cost savings associated with the Bonneville deal.

Related Pages:
New Ferndale Smelter Energy Deal Made to Benefit Both BPA, Alcoa by Dave Gallagher, Bellingham Herald, 4/13/16
Alcoa in Power Deal that may Keep Intalco Aluminum Plant Open by Josephine Mason, Reuters, 4/13/16
Intalco Aluminum Smelter in Ferndale may Stay Open by Dave Gallagher, Bellingham Herald, 4/12/16
Alcoa Hiring Temporary Employees for Ferndale Smelter Work by Dave Gallagher, Bellingham Herald, 2/28/16

Alcoa Intalco Works’ timeline of 54 years in Whatcom County

Alcoa Corporation announced Wednesday, April 22, that it will close its Intalco Works aluminum smelter near Ferndale amid declining market conditions, laying off 700 employees. Legislators said they will do what they can to save the facility that has been in Whatcom County for 54 years.

• May 1966: The Ferndale-area smelter begins operation as Intalco Aluminum Corp., owned by Alumax, Pechiney and Howmet.

• 1970: Intalco has 1,350 employees.

• October 1983: Union workers approve three-year contract, ending a two-week strike.

• 1983: Intalco produces 8 percent of the nation’s aluminum.

• 1984: Record set with 286,000 tons of aluminum shipped.

• June 1998: Alcoa Inc. and Alumax merge, creating Alcoa Intalco Works.

• May 2000: Alcoa executives consider building their own power plant to run Intalco, out of concern over rising energy rates.

• May 2001: Unable to cope with high energy prices, Intalco temporarily closes the plant, keeps its employees, and sells its power back to Bonneville Power Administration to aid in the energy crisis. BPA pays for the wages and benefits of nearly all the workers, plus $1.75 million to cover Intalco’s tax burden.

• May 2002: After being shut down for six months, the smelter reopens two potlines.

• October 2003: Alcoa shuts down a potline because of high energy costs, cutting 200 jobs and leaving only one of three potlines in use.

• June 2006: Alcoa becomes full owner, buying out remaining partners.

• August 2006: Alcoa signs five-year power contract with BPA, ensuring work for its 450 employees.

• February 2007: The smelter restarts its second potline, boosting employment to 575.

• October 2008: BPA proposes long-term contract to power Intalco.

• October/November 2008: In response to the recession and less demand for aluminum, the smelter institutes budget cuts, including cutting about 100 jobs.

• July 2009: BPA and Intalco reach tentative agreement for enough low-cost power to run the plant at or near two-thirds capacity for seven years, guaranteeing at least 528 jobs.

• September 2009: After an August court ruling restricting BPA’s authority to share power with Intalco, the July proposal appears to be in jeopardy.

• December 2009: BPA approves a two-phase contract that guarantees enough power to keep 528 workers employed for 17 months. After that, BPA could offer five more years of power if courts approve and economic conditions permit.

• October 2010: BPA agrees to short extension of its contract with Intalco, guaranteeing the smelter’s power supply through late May 2012.

• January 2011: Alcoa announces the hiring of 60 more employees and an increase in production.

• October 2011: Union workers vote to strike, but stay on the job while talks continue. After two weeks, workers accept a revised contract offer.

• December 2012: The plant signs a 10-year power contract with BPA.

• 2013: The plant is at 80 percent capacity, with two-and-a-half of three potlines operating, producing about 230,000 metric tons of aluminum a year.

• September 2015: Alcoa announces it is splitting into two companies. Intalco Works focuses on upstream products, including aluminum, considered the weaker of the two companies.

• October 2015: Union workers approve contract extension through March 2017.

• November 2015: Alcoa announces it is idling smelter operations at its Ferndale and Wenatchee plants. The Ferndale shutdown affects more than 400 workers.

• May 2016: Alcoa and BPA finalize a contract amendment that keeps Intalco operating. The amendment lasts through Feb. 14, 2018; the 10-year contract itself runs until September 2022.

• Aug. 13, 2016: Alcoa Intalco Works celebrates 50 years in operation at its annual employee summer picnic.

• Sept. 30, 2016: Alcoa splits into two companies, Alcoa and Arconic. Intalco remains with the Alcoa brand.

• Aug. 5, 2019: Alcoa to put in new pollution equipment to reduce sulfur dioxide emissions. The $15 million project was scheduled to be completed in 2022.

• March 25, 2020: An Intalco worker tests positive for COVID-19.

• April 22, 2020: Alcoa announces it is closing the Intalco smelter in July, laying off around 700 workers.