Teamsters gain foothold at Real Alloys

The news is three weeks old, but it is still important to note. May 3, saw 130 workers at Real Alloy’s Morgantown, KY secondary plant voting to join Teamsters Local 89.

This represents a rare win the aluminum processing sector by the Teamsters. Historically, the Teamsters represented the now defunct Aluminum Shapes extrusion operation in Delair NJ. They also represent Republic Waste and the leading aluminum soffit/siding/roofing accessories manufacturer, Rollex.

Our research does not show another recycled metals processor in the country under the banner of the Teamsters. Organized labor is well represented in the aluminum space, notably at Alcoa, Arconic, Bonnell, Century and Constellium through the United Steelworkers (USW).

Relations between the aluminum industry and organized labor have been reasonably good the past few years. The last strike was at Constellium in 2021. There is no reason to be that the Teamsters organization of Morgantown will lead to a contentious situation when they sit down for their first contract negotiation.

We would note that the organization did not go down well inside Real Alloys, as they made local management changes in the aftermath of the results. Anytime you are dealing with organized labor, negotiations have to be handled with great finesse. Time will tell whether allowing the Teamsters to come to the table at Morgantown will prove unsettling to this operation.

Why it matters

Morgantown is an important part of the Real Alloys recycling toll business segment. They serve as a critical supply chain component to the rolling mills in the region. Any disruption of their operations would have an immediate effect on suppliers losing an important delivery destination. The mills taking molten and cold metal from Morgantown would also potentially be affected.