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ArcelorMittal Temirtau to start axing 2500 workers in spring 2014

17 february 2014, 14:26
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©Reuters
©Reuters
ArcelorMittal Temirtau will start the scheduled axing of 2500 workers of its metallurgical plant in spring 2014, Tengrinews reports citing the interview that the company's HR Director Andrzej Wypych gave Interfax-Kazakhstan.

"Around 500 workers out of 2500 will be cut because their projects will be outsourced, another 500 people will resign voluntary and the remaining 1500 workers will be dismissed on grounds of redundancy. The disposal process has already started in relation to 600 workers. The actual dismissals will start in spring, in March, April and May. The process will a gradual and will continued until the end of the year," he said. The calculations made by the company shows that the dismissal is going to help the company cut costs very effectively. "For example dismissal of one thousand people will save $8 million for the company," he added.

Meanwhile, according to the press-service of the Akimat (Regional Authorities) of Karaganda Oblast, the Akim (Governor) of Karaganda Oblast Baurzhan Abdishev met with Vijay Mahadevan, Head of ArcelorMittal Temirtau and asked him to minimize the number of job cuts as much as possible. The company's CEO promised not to cause any social tension.

"The largest investment project -- launch of the Blast Furnace #3 after an overhaul -- is going to be commissioned at the complex in September 2014; it will allow us to increase the output. And the company has quite optimistic plans for future, it means the large-scale reduction of personnel is no longer necessary," the Akimat's press-release said.

Meanwhile according Viktor Schetinin, Vice-chairman of Zhaktau Steel Workers Union, the company is squeezing its personnel. "We were told that the workers agree to give up their 13th salary (benefit) there will be no dismissals. This is blackmailing. The 13th salary is part of our the collective labor contract and it is depends on the work efficiency of steel workers. Why should they give up their bonuses after working hard for the whole year?" Schetinin told Interfax-Kazakhstan. According to him, the average salary at the metallurgical plant makes 129 thousand tenge ($700).

Schetinin believes that despite the meeting with the Akim (Governor), the company won't cancel the mass dismissal. "The existing orders (600 dismissals) to fire steel workers have weren't canceled. They are still valid. If Mahadevan promised to the Akim of Karaganda Oblast not to exacerbate the situation and minimize the social consequences, it doesn't mean the promise is going to be fulfilled or that it would mean no cuts," he added.

ArcelorMittal Temirtau is part of ArcelorMittal multinational steel manufacturing corporation and is the biggest metallurgical enterprise in Kazakhstan. The ArselorMittal Temirtau includes a metallurgy complex in Temirtau, 8 coal mines in Karaganda Oblast and 4 iron ore mines in Karaganda, Akmola and Kostanay Oblasts.


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