EMCC European Monitoring Centre on Change

ArcelorMittal Galati

16 Jul, 2015
    • Romania
  • Organisation size

    1000+

  • Establishment size

    1000+

  • Type of restructuring
    • Internal restructuring
  • Ownership
    • Private
  • Involved actors

    • European Commission
    • National government
    • Trade union
    • Works council
  • Management of change activities
    • Diagnosis of the situation and designing change procedures
    • Information and consultation of workers or their representatives
    • Multistakeholder communication and networking
    • Working time flexibility measures
    • Wage flexibility measures
    • Redeployment of affected employees within the organisation
    • (Re)training of affected employees
    • Flexible/early retirement schemes
    • Supporting the access to finance of the affected organisation
This case study focuses on the measures used by ArcelorMittal to cut costs and avoid involuntary redundancies during the crisis in its largest Romanian subsidiary. The study aims to assess the effectiveness of the various measures applied to keep staff in employment and to ensure the company’s viability. Specific emphasis is given to temporary layoffs and compulsory annual leave schemes to all staff in Romania. The study also discusses the role of government in supporting flexible measures and, furthermore, the role of unions and the European Works Council (EWC) in the design and implementation of the measures.

 

keywords
  • Recession/crisis
  • Flexicurity