The steel mill ArcelorMittal Galati temporarily stops work in 2016 due to cheap imports from China

The problem with cheap steel imports from China also affects the Romanian steel industry.

According to some information from trade union sources – later confirmed by the management of ArcelorMittal. At this moment, tough negotiations are taking place. So that the employees are convinced to accept the reduction of the work schedule in 2016. Obviously, those days will not be paid. And this will lead to the decrease of employees’ salaries by between 3 and 5 percent.

ArcelorMittal Galati announces that it has taken strong measures to protect resources, during this period of time, when the business is affected by the massive imports of steel from China, at very low prices. This situation affects the entire European steel industry. For 2015, our unit avoided making decisions with social impact. But for the first quarter of 2016, it is forced to implement the Shortened Working Week (S.R.L.)”, according to a press release from Arcelor Mittal.

Imports of cheap steel, especially from China, but also from other countries, such as Belarus, are increasing on the EU market, hitting the steel industry and causing the loss of thousands of jobs. Having production capacities that far exceed consumption – more than twice the total volume of steel demand in the E.U. – China delivered unprecedented amounts of steel.

The European steel sector has lost at least 85,000 jobs since 2008, i.e. over 20% of the workforce. At least 5,000 jobs were cut in the last quarter alone.

Read more: adev.ro/nytwg1

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