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ArcelorMittal reported on the progress of negotiations with the protesting metallurgists in Kazakhstan

Asia

Employees of JSC ArcelorMittal Tubular Products Aktau, a loss-making pipe plant, demand a 100% increase in wages.

ArcelorMittal reported on the progress of negotiations with the protesting metallurgists in Kazakhstan

Last week, workers at the Kazakh pipe plant JSC ArcelorMittal Tubular Products Aktau recorded a video message addressed to the President of the Republic demanding a 100% increase in wages and threatened to hold protests.

Back in March, an initiative group of workers presented a number of requirements to the plant management. On April 11, the workers sent a letter to the management of ArcelorMittal Temirtau, after which the company decided to create a special working group chaired by the director for social and labor relations to analyze and assess the current situation.

On April 15, 120 employees of the plant spontaneously suspended work demanding higher wages and stating that their demands were not being met.

JSC "ArcelorMittal Tubular Products Aktau" is the only manufacturer of steel pipes of large diameter in Kazakhstan, the design capacity is 60 thousand tons of pipes.

From the moment of launch, it did not function at the declared design capacity due to the lack of a portfolio of orders and for this reason it was unprofitable most of the time.

However, as the press service of ArcelorMittal explained, despite the loss, realizing the social significance of this enterprise for the region, the company continues to operate the plant, and twice during 2021 made an increase in wages for all employees of the enterprise - in total by an average of 35 %.

Over the past 11 months, the enterprise has been partially loaded, and part of the staff has been brought to idle mode, while paying 50% of the average monthly wage in accordance with the labor legislation of the Republic of Kazakhstan. An additional negative factor was the pandemic, which also brought a number of restrictions and difficulties.

The video message of the workers was immediately brought to the attention of the company's management. On the same day, AMT representatives headed by the director of labor relations flew to the place.

From April 16 to April 17, representatives of the company's management held discussions with an initiative group of workers on issues of greatest importance to them - this is an increase in wages, the quality of the logistics service and the company's ability to ensure full workload of the enterprise, improve social conditions.

During the discussion of these issues, the workers voiced their concern about the condition of the equipment, since, in their opinion, they will not be able to perform the planned scope of work on it after the signing of new contracts. On this issue, a commission audit of the technical condition of the equipment was carried out, the results were presented to the company's management.

Following the clarifications received from the company's management, most of the workers expressed a desire to return to work, but there are workers who insist on continuing the unsanctioned protest.

In connection with the current situation, when the company's managers are making efforts to ensure the full workload of the enterprise, the plant management and the work team must make every effort to ensure the operation of the enterprise in the normal mode and its further efficient functioning. The company's management urges its employees not to succumb to outside provocations and informs that decisions will be made on all issues of concern in the very near future.

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