EMCC European Monitoring Centre on Change

US Steel Košice

Company/Organisation:
US Steel Košice

Geographic Location

Country: Slovakia
Region: Kosicky kraj; Vychodne Slovensko
Location of affected unit(s): Košice

Company

Sector: Manufacturing
Manufacture of basic metals and fabricated metal products, except machinery and equipment
24.10 - Manufacture of basic iron and steel and of ferro-alloys
Number Employed: 12000
Group: US Steel

Employment Effects

Announcement Date: 22-07-2019
Planned Job Reductions min: 2500
Planned Job Reductions max: 2500
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-10-2019
Foreseen End Date: 31-12-2021
Direct Dismissals: 2500

Additional Information

Steelmaking manufacturing company US Steel Košice (USSK) announced a plan to reduce the company and its subsidiaries' workforce by 2,500 employees by the end of 2021. According to the company, the decision to dismiss employees can be mainly attributed to expensive emission quotas and trade war fears. In light of these contextual factors and long-term decreasing prices of steel in the market, the company decided to increase its competitive advantage with a collective dismissal.

Trade unions agreed with management on a voluntary redundancy plan, which allows employees with at least 10 years of seniority to receive a severance pay amounting to 12 times their average monthly salary. As of 26 August 2019, around 700 employees applied for a voluntary redundancy under the agreed plan. As applications are being scrutinised, it is still possible that some applications will be turned down. Discussions between trade unions and management on the use of a shortened work week are underway, but no agreement has been reached yet.

Nevertheless, it is likely that dismissals will start in October.

Sources: