1. Main
  2. Learn
  3. Economy
  4. Companies

ArcelorMittal Temirtau and local labor authorites locked in battle over wages cuts

Photo © RIA Novosti Photo © RIA Novosti

In July ArcelorMittal Temirtau announced plans to cut wages of its employees by 25% starting from August due to critical market conditions. The company informed the government of Kazakhstan, trade unions and workers about the decision to decrease the wages. Top managers of ArcelorMittal Temirtau met with local authorities to explain the forced measures. 

However, the State Labor Inspector of Kazakhstan issued a warrant instructing the company to withdraw the order #495 dated August 4, 2015 that provisioned for the decrease of the wages by 25%. The order was rendered ineffective by the Labor Inspection based on the country's Labor Code. 

The Labor Code recognizes acts of employers that degrade employee’s conditions with or without the employee’s consent ineffective. That means, ArcelorMittal Temirtau has to send the labor inspector an official letter confirming that the company followed the instructions and canceled the order before noon of August 13. 

ArcelorMittal Temirtau however is going to file a protest against the warrant. The company explained that the decrease of wages was crucial for it. 

"ArcelorMittal Temirtay JSC hereby declares that it does not agree with the warrant issued by the state labor inspector and having consulted the legal department it decided to file a protest. At the same time, ArcelorMIttal Temirtau continues negotiations with heads of trade unions of steel and coal departments of the company to reach an agreement on this issue. We think that decrease of wages is preferable to mass dismissal of employees," the press office of the company said.

ArcelorMittal Temirtau, a steel giant in Kazakhstan, is part of ArcelorMittal that is among world leaders in production of steel and occupies a leading position on the main steel markets around the world, including the industries like car-making, construction, household appliances and packaging. The company also has large reserves of raw materials and an efficient distribution system. The company employs more than 200,000 people and has operations in 60 countries.

By Gyuzel Kamalova, editing by Tatyana Kuzmina


Nobel prizewinner proposes a new city in KZ
New abnormal snowfalls expected in Kazakhstan
Huge glacier retreat triggered in 1940s
Hyperloop construction begins in Las Vegas
"Moonlight" to top Spirit Awards nominations
Oil prices fall due to investors uncertainty
New dwarf galaxy discovered around Milky Way
Kanat Islam becomes a top ten WBO boxer
World oil prices continue to rise
Kazakhstan expects warming - Kazhydromet
Merkel to seek fourth term as chancellor
Sale of Tintin drawings set to break records
US, EU stocks fall as markets focus on dollar
Pacific leaders urged to defend free trade
EU warns eight nations on budget deficit
Universiade-2017: Athletic Village is ready
Bob Dylan can't make Nobel ceremony
Messi will never leave Barca - club president
Google, Facebook take aim at 'fake' news
Aerosmith announces Europe 'farewell' tour
Putin, Trump to normalise US-Russia ties
At least 10 hurt in southern Turkey blast
6.2 quake hits western Japan
OPEC agrees shock oil output cut
Israeli ex-president and Nobel laureate Peres dies
Germany blocks WhatsApp data transfers to Facebook
32,000 arrested in Turkey coup probe
Youth to the fore as Milan fashion week opens
Xenophobia threatening peace in eastern Germany
Four-in-10 Japanese are virgins: poll
Sweden re-militarises Baltic island of Gotland
China to launch second space laboratory: Xinhua
More than a billion stars mapped in Milky Way: ESA
Boxing: Golovkin eyes Saunders after stopping Brook
Kazakhstan shifts PM to security chief
Oil prices gain despite rising OPEC supply forecast
US to give Philippines military planes
Singapore wages war on Zika-bearing mosquitoes
Italy quake death toll nears 250
Viral photos add fuel to French burkini debate
18 dead as Italy struck by powerful quake
Japan's first lady visits Pearl Harbor
Pokemon's a no-go on Bangkok's roads
July was Earth's hottest month in modern times
Pakistan rock climbers scale new heights