ArcelorMittal is considering extending the temporary employment scheme in Spain

The deterioration of prospects in the steel market prompted the company to start negotiations with the trade unions

Steel corporation ArcelorMittal plans to introduce a new provision for temporary employment (ERTE) for the workforce in all production units and commercial centers in Spain, Kallanish informs about it.

According to trade unions, the slowdown in demand and worsening market prospects for the fourth quarter of 2023 and next year prompted the company to start negotiations on the extension of the ERTE period.

The company applies the scheme of temporary layoffs in Spain after the fire that occurred at the blast furnace A at the enterprise in Gijon in March 2023 – it affects 7 thousand workers. The ERTE expires on September 29.

ArcelorMittal and the workers’ representatives are currently discussing the measures that could be implemented. In particular, the unions demanded clarification from the company on the percentage of production losses that justify the new ERTE, this has not yet been done. At the last meeting, the corporation provided only supporting and technical reports. The next round of negotiations is scheduled for September 22.

According to El Periódico de España, a new temporary employment document from ArcelorMittal will see a six-month reduction in working hours of 25% in Asturias, ranging from 15% to 50% in other regions.

The trade union organizations represented at ArcelorMittal will carefully analyze whether the reasons given by the company correspond to the implementation of the new provision on temporary employment, the real state of affairs in the market and the production situation at the various plants.

As GMK Center reported earlier, in June 2023 ArcelorMittal officially appealed to the government of Spain with a request to allocate €450 million to support its decarbonization projects in the country. Co-financing is part of the national recovery, transformation and resilience plan.

Also, ArcelorMittal Europe, the European division of one of the largest steel producers in the world, in the first half of 2023 reduced production of steel by 13.1% compared to the same period in 2022 – to 14.72 million tons. Steel shipments for January-June decreased by 7.8% y/y – to 15.03 million tons.