Workers avoid strike with Real Alloy labor deal

Real Alloy

A Real Alloy labor deal has avoided a strike at a key US secondary aluminum site. Workers ratified their first collective bargaining agreement after authorizing strike action. Therefore, the Real Alloy labor deal reduces near-term operating risk for aluminum scrap recycling customers.

Union-backed employees at Real Alloy’s Morgantown, Kentucky location approved the contract unanimously. More than 130 workers voted in favor, according to the Teamsters. Meanwhile, the agreement follows a unionization move in May and closes a volatile negotiation window.

Contract terms support retention and plant stability

The Real Alloy labor deal delivers higher annual raises, improved retirement benefits, and stronger time-off policies. These terms can improve retention in a labor-tight industrial market. As a result, the plant may see better staffing stability during peak scrap inflows.

Labor agreements also reduce the risk of unplanned downtime. Consistent operations matter for scrap-driven smelters that rely on continuous furnace utilization. However, buyers will still track whether productivity and safety metrics improve after the contract takes effect.

Morgantown’s equipment footprint anchors recycled alloy output

The Morgantown plant runs three rotary furnaces, one holding furnace, and one reverberatory furnace. The 210,000-square-foot facility produces recycled secondary ingots and molten metal from aluminum scrap. Therefore, stable labor relations protect output used by downstream diecasters and industrial consumers.

The site also includes a shredding operation and a salt cake processing facility. That integrated setup supports feed preparation and residue management at one location. Meanwhile, this vertical capability can help Real Alloy control unit costs and reduce logistics friction.

The Metalnomist Commentary

This agreement matters because labor stability is supply stability in secondary aluminum. However, wage and benefit gains can pressure margins if scrap spreads tighten. Therefore, Real Alloy will likely push harder on recovery rates, energy efficiency, and value-added alloy specs.