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ArcelorMittal Temirtau employees to receive full salary

Photo courtesy of the press service of the Governor of Karaganda Oblast. Photo courtesy of the press service of the Governor of Karaganda Oblast.

ArcelorMittal Temirtau will pay the remaining 25 percent of the workers' wages before February 17, Tengrinews reports. The company had already began paying the first part - 75 percent - of the workers’ wages.

On February 9, the Governor office of Karaganda Oblast, top managers of ArcelorMittal Temirtau and representatives of the Trade Union of Workers of Mining and Metallurgical Industries signed a trilateral memorandum to preserve the salaries of the employees of ArcelorMittal Temirtau, an Indian owned steel company and one of Kazakhstan’s largest industrial enterprises.

ArcelorMittal pledged to pay the wages in full to its metallurgists and miners before February 17. Governor of Karaganda Oblast Nurmukhambet Abdibekov spoke about it when signing the memorandum. "During the negotiations we have reached an agreement that the company will pay the full amount of wage to workers before February 17. The General Director of ArcelorMittal will find the funds and the debt will be repaid," the region’s Governor said.

Vijay Makhadevan, General Director of ArcelorMittal Temirtau in his turn, did not comment on the agreement. Although, earlier, he said that the company would not be able to make the payment unless the financial situation in the company caused by the uncompetitiveness of the Kazakh steel at the Russian market amid 80% devaluation of the Russian ruble improved.

Therefore, it remained unclear where the company was going to find the funds that it lacked. During the press conference that followed the signing, journalists were also puzzled with this and asked the Director of Human Resources and Labor Relations of the company Dmitry Pavlov about it. He said that the required funds were generated by the company’s sales. ArcelorMittal Temirtau explained that by February 17, the profits from sales would be enough to repay the remaining 25 percent of the wages. 

Abdibekov said that the company would try to make every effort not to let it happen again. He again reiterated the causes that explained why the company was trying to cut the wages. "The devaluation of the Russian ruble, a decline in demand for products of ArcelorMittal has led to a difficult financial situation and forced the company to pay only 75 percent of the salary to the workers," the Governor said.

The Governor’s office pledged to take measures to address the problems in the production process of ArcellorMittal Temirtau and create favorable conditions to attract investment to the region.

Under the memorandum, ArcelorMittal Temirtau is responsible for identify the production factors that would ensure uninterrupted functioning of the company’s enterprises, stable sales of its products, decrease in the production costs and modernization of the equipment.

In case of the company's output will be decreased, redundant workers will be transferred to other jobs and will also undergo retraining. In addition, the trade union will take every opportunity to preserve the jobs, including introduction of shortened working day.

If the plant's activities are temporarily suspended due to economic or industrial reasons, all required measures will be taken for the social security of workers in accordance with the legislation of Kazakhstan.

The scope of responsibilities of trade unions under this agreement includes prevention of social and labor conflicts, negotiation with the workers of the measures taken by the enterprise's administration and government to stabilise the production processes.

“After all, the agreement is aimed at building a civilized, socially-oriented partnership that will ensure stable jobs, salaries, confidence about the future and public consent,” the region’s Governor said.

By Assel Satubaldina


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