NEW YORK (TheStreet) -- Alcoa (AA) was falling -2.5% to $13.22 Thursday following reports that the company is still in negotiations with the United Steelworkers union less than 24 hours before the current labor contract expires.
According to Reuters Alcoa and unionized workers at 10 U.S. plants are still divided on several issues including wages and healthcare premium increases. At least four United Steelworkers chapters voted to give the union the right to authorize a strike if an agreement can't be reached. There is no guarantee that a strike will occur, however.
The current labor contract is scheduled to expire at 12:59 a.m. EDT Friday. Negotiations for a new contract began in April.
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TheStreet Ratings team rates ALCOA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALCOA INC (AA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."