Union leader Mircea Scantei on Friday said unionists are set to stage protest rallies on September 14 after the Russian steel group decided to halt the company’s entire activity ever since last winter, citing the lack of orders, and to carry out layoffs.
Scantei pointed out that the group’s reasons for the planned layoffs are not grounded, because neither the production nor the consumption saw decline in the first half of the year, compared with the same period in 2011. He also said the Romanian steel industry boasted around 200,000 employees back in 1990, whereas now, it has only 31,000 employees.
Unionists said that 800 employees were already sacked in March this year and 800 more employees will be laid off in the upcoming period, adding they have repeatedly complained about the company’s situation to Government officials, but nothing has changed. They stressed that Liviu Pop, minister-delegate for social dialogue, promised he will analyze the privatization contract, which is not accessible to unionists. Under the circumstances, they are calling on Government officials to step in and take the necessary measures so as to keep current jobs, put an end to mass layoffs, create new jobs for redundant employees and attract investors.
In late March this year, Mechel group notified union leaders at Mechel Campia Turzii that almost 800 of the company’s 1,904 employees will be laid off starting June.
Mechel’s operations in Romania include steel makers Mechel Targoviste (COS.RO), Laminorul Braila (LMRU.RO) and Ductil Steel Buzau. The Russian group has around 7,000 employees in Romania.