BOSTON, June 28 -- Alcoa Inc., the largest U.S. maker of aluminum, won approval from the United Steelworkers union for a four-year labor contract that includes a 5 percent pay raise.
The accord through May 15, 2014, covers almost 6,000 staff at 11 U.S. plants run by New York-based Alcoa, the union said in an e-mailed statement today. Employees will get lump-sum payments of $2,750 in lieu of higher wages in the first two years, followed by a 5 percent pay increase for the second half of the agreement.
Contributions to family health plans by workers, who haven't held a strike since 1986, will climb to $47 a week from $32 over four years. They will receive a $1,250 signing bonus for approving the accord by June 30.
"Under the circumstances we believe that this agreement is the best we can achieve, and sees us through the bad times, preserving our most important gains," the union said in a June 15 message to members recommending they vote for the deal.
In voting yesterday, the contract was supported by 68 percent of union membership, the United Steelworkers said on its website.
"This new agreement is a good outcome for our employees, shareholders, customers and communities," Alcoa said in a statement today.
Alcoa rose 12 cents, or 1.1 percent, to $11.23 at 4 p.m. in New York Stock Exchange composite trading. The shares have dropped 30 percent this year, the largest decline in the 30- member Dow Jones Industrial Average.