News in English     | 20.05.2020. 12:13 |

ArcelorMittal temporarily suspends operation of plant over large drop in demand

FENA Press release

SARAJEVO, May 20 (FENA) - Due to a large drop in demand, caused by the economic crisis, it was necessary to temporarily suspend the operation of the plant in ArcelorMittal Zenica, it is announced from this company.

The Management of the Company reminds that the whole world, including Bosnia and Herzegovina, is facing an unprecedented economic crisis caused by the COVID-19 virus pandemic, and that it is indisputable that BiH, together with many European countries, is facing a recession, and that the economic downturn is at least 3.5 percent.

“We are already witnessing the closure of many companies, job losses and decline in production and services, which is caused by drastically reduced demand for almost all types of goods. As an industry that is highly export-oriented to the Balkan countries, we are facing a situation where almost all infrastructure projects and construction works have been stopped or minimized, which seriously affects our sustainability,” the statement said.

ArcelorMittal Zenica also stated that from the beginning of the year until March they worked at full capacity and safely, and that they took measures to protect people during the pandemic, and that, in addition to a number of additional preventive measures in the fight against coronavirus, about 500 of their employees worked from home or were on standby, without pay cuts.

In order for the production to be in line with the demand, the Management of the Company made a decision to temporarily suspend production for 10 days, starting on May 19.

At the same time, the Management Board of the Company reminds that since the beginning of the new crisis, it has informed the ArcelorMittal Zenica Trade Union about all business challenges and activities to overcome them, thinking they would understand and give their support.

In accordance with that, we recently proposed to the Trade Union a reduction of salaries for only 25 percent of the Company's employees, these are managers, with a reduction of salaries in the range of 10 and 20 percent. The other 75 percent of workers would be completely exempted from any reduction. Unfortunately, the Union was not able to understand the seriousness of our situation and rejected the proposal, stated the Management.

(FENA) A. B.

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