The top management of PJSC ArcelorMittal Kryviy Rih in Dnipropetrovsk region, Ukraine's largest mining and metallurgical plant, has said that layoffs at the enterprise is a necessary measure and will concern only 1% of workers.
Article 64 of the Commercial Code of Ukraine stipulates that a
company can independently determine its organizational structure, the
number of employees and its payroll schedule, reads a statement by the
mill’s top management regarding the Tuesday rally held by the mill’s
primary trade union organization.
“PJSC ArcelorMittal Kryviy Rih acknowledges the right of the trade
union organization to express its point of view in public regarding
decisions taken by the administration. However, the enterprise’s
management emphasizes that it continues to operate within the legal
framework, without violating labor standards for workers and the
requirements of the Labor Code of Ukraine,” reads the statement.
The document said that amid the structural crisis in the steel
industry the enterprise’s management sought to reduce costs in the first
place by improving internal processes, reducing the consumption of
materials and lowering their prices, as well as optimizing maintenance
work. However, these measures have not been enough to ensure
competitiveness and maintain a strong position in the market.
“In the current situation, the company won’t be able to avoid partial
layoffs to preserve the stability of PJSC ArcelorMittal Kryviy Rih to
ensure social security and stable wages for its employees,” the
statement reads.
At the same time, the steelmaker’s top managers say that they believe
that talk of large-scale layoffs was absolutely unwarranted.
“[This is] because 446 out of 38,267 posts at PJSC ArcelorMittal
Kryviy Rih are subject to elimination, which is 1% of the total number
of positions held,” the statement says.
At the same time, the dismissal process will be transparent; will be
held in close cooperation with the trade union, in accordance with all
legal norms and provision of social guarantees that are applicable at
the enterprise. In particular, workers whose jobs are subject to
elimination will be offered a transfer to another position at
ArcelorMittal Kryviy Rih.
