EMCC European Monitoring Centre on Change



Geographic Location

Country: Spain
Region: Principado de Asturias; Noroeste
Location of affected unit(s): Avilés and Gijón (Asturias)


Sector: Mining / quarrying
Mining and quarrying
07 - Mining of metal ores
Number Employed: 7400
Group: Arcelor

Employment Effects

Announcement Date: 06-05-2004
Planned Job Reductions min: 650
Planned Job Reductions max: 650
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-10-2004
Foreseen End Date: 01-05-2007

Additional Information

Aceralia, the Spanish subsidiary of Arcelor, situated in Asturias, has shown losses amounting to € 16.4 million in 2003. The Arcelor Group has decided to restructure this production plant. These measures include redundancies and a € 500 million Investment Package within the next three years. Because the average age of the workforce in the production plant in Asturias is 54 years, the Job Reduction Plan would involve early retirement measures. Labour representatives have not yet agreed on the terms of the job reduction plan. The unions alleged that these measures do not guarantee the viability of the plant in Asturias as management left unaccomplished production measures proposed years before. On 25 September 2004 the company and labour representatives have agreed on the job reduction plan of the company. The measures involve early retirement for up to 8% of the labour force. On 16 October 2004, the company has agreed early retirement measures for up to 650 employees for the plants in Avilés and Gijón (Asturias).The company will hire up to 150 new workers. The final agreement includes flexibility measures for the employees.