Trade unions are protesting at Mittal Steel Poland, the county’s biggest steel conglomerate. They object to the Management’s failure to implement the investment plan and social package provisions. The representatives of the managing board of the group are astonished, because in their opinion all obligations that the group was imposed with are being executed.
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Trade unions are protesting at Mittal Steel Poland, the county’s biggest steel conglomerate. They object to the Management’s failure to implement the investment plan and social package provisions. The representatives of the managing board of the group are astonished, because in their opinion all obligations that the group was imposed with are being executed.
Since 2004 Mittal Steel Poland has been in possession of the four biggest steel plants in Poland, which are based in: Dąbrowa Górnicza, Sosnowiec, Kraków, and Świętochłowice. While acquiring the plants the investor obliged himself to modernise the production. As for the staff, he made assurance about a social package. Within almost one year from Mittal Steel’s entry none of these conditions has been fulfilled, trade unions say. Four major charges have been reiterated by the unions so far:
Neglect of safety and hygiene of labour conditions,
Lack of investments,
Cost cutting, which impaired safety at the works,
Workers are being humiliated.
As a sign of protest a number of workers started occupation of the company headquarters. Soon after that there has been a union picket organised in front of that building. In addition, at the same time in the Kraków-based Huta Sendzimira, which is part of the group, workers initiated a hunger strike.
The escalation of the protest caused concern of the government administration. Consequently a meeting was held by representatives of the Ministries of State Treasury and Economy, Labour and Social Policy. The government people were mostly interested if Mittal would be capable of executing the investments scheduled for the end of 2006. The company representatives pledge these plans are not at risk. However the trade unions do not feel reassured, and repeat their mantra: '...we are protesting because we do not believe the new owner. He does not abide by the social package or the investment plan...'
The unions’ attitude is a surprise to the managing board. 'We are carrying out the social package provisions', they say and add that before long the workers will be receiving bonuses for the year 2004, and the trade unions were granted an endowment of EUR 25 per each union member.
The background of the dispute between Mittal Steel and trade unions is interesting. It is happening while the company is negotiating the acquisition of Huta Częstochowa plant.
According to the Ministry of State Treasury (Ministerstwo Skarbu Państwa, MSP) Mittal Steel Poland offered a better price than its counter bidder, the Ukrainian ZP Donbas.
Nevertheless the problems faced by the Indian-British investor, unable to set a closure to trade unions negotiations, is a ray of hope for the Ukrainians. Even though the representatives of Mittal maintain the social package is not a sine qua none condition of the steelworks’ acquisition, the other party is not as easily persuaded and already indicates that the sale without social package agreement is unlikely.
As reported by the press (Gazeta Wyborcza), a few days ago Mittal presented a final proposal of social package. Although this proposal is closer to the acceptable compromise, and both sides have proven that they are capable of making concessions, also this time the offer will be rejected. The main bone of contention is employment guarantees. 'If we accepted the terms offered by Mittal now, we would have nothing to come back to...', union members told reporters. At the same time trade unions protested against the practice allegedly exercised by the company. Unionists say Mittal threatened them that if the talks fail again it would sue them in court. If this be true, the steel works could face a grave danger. A lawsuit can take very long. Much longer than 7 August 2005, which is a crucial date for the Częstochowa-based plant. On that day the settlement agreement with creditors expires, and the plant is unable to pay them back on its own. This means it would have to start bankruptcy procedure.
Mittal officially denies all trade unions’ revelations.
Negotiation problems do not impress Donbas, whose representatives claim they would manage to close negotiations before the August date. What’s more they are said to be capable of offering better social package than Mittal. It is also believed the 4.5 thousand staff of the plan is taking the side of Donbas. Finally, also the trade unionists from Mittal advise the colleagues at Huta Częstochowa against marriage with the Indian-British giant.
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Eurofound recommends citing this publication in the following way.
Eurofound (2005), Trade Unions’ Protests in Steelworks, article.
