ArcelorMittal Employment Regulation Dossier Reaches Agreement with Spanish Unions
Last night, the management team at ArcelorMittal and the majority of union representatives from UGT, CC OO, and USO reached a joint agreement on the conditions of the new ERTE, a temporary workforce regulation measure triggered by a downturn in orders. The arrangement covers specific product lines and will affect about 6,500 workers across Spain, including 5,100 in Asturias.
For economic and productive reasons, the ERTE spans three months, ending on December 31, rather than six months as initially proposed. The plan reduces working hours in Asturias by 15 percent, down from the 25 percent initially set by the company. In Sagunto, part of the Valencian Community, the reduction drops from 15 percent to 5 percent. In Etxebarri, in the Basque Country, the reduction remains at 50 percent. The ERTE also applies to workers at Navarre plants in Lesaka and Lagasa (35%), ArcelorMittal Distribución based in Llanera and Distribución Norte (both at 20%), and AMDS Processing, which handles flat carbon products in Legasa and Lagasa, with an overall impact of 40 percent. The goal is to tailor the measures to the actual production free spaces and to limit disruption where possible.
The unions had warned that maintaining the same guarantees seen in the previous ERTE would be unlikely and warned that the conditions could worsen. Nevertheless, the company agreed to offer the following: previous regulatory filings would stand, 90 percent of gross salary plus overtime would be paid, and 100 percent of the standard fee would be preserved during leave.
The company also stipulated that the measure would apply only to facilities that must suspend activity due to cargo shortfalls. In cross-sectional analyses, only the maximum percentage impact at the affected facility would be considered. It was also agreed that contract suspensions would not compromise social benefits or other entitlements for workers.
The final terms of the offer reflect the six-month application favored by employee representatives, the impact percentages announced at the first meeting, and the same economic and social conditions cited in the last ERTE, including economic, technical, organizational, and productive factors.
Unions had opposed a six-month ERTE, arguing that the legal and technical reports provided forecasts for the quarter only and that the six-month duration and the proposed percentages were disproportionate. The company had initially raised these concerns at the start of negotiations.
The ERTE is justified by a decline in demand, principally impacting lines for tinplate, wire rod, and pre-coated coil used in construction, with galvanized coil production affected to a lesser extent.
In a July report, Eurofer, the European steel association, warned of a sharper-than-expected market deterioration towards the end of the year but predicted stronger demand in 2024. Sadei indicated that Asturian industry activity would continue to fall through the remainder of the year.
Principality and Femetal to Collaborate on Just Transition Fund Development
Following yesterday’s agreement between the Ministry of Ecological Transition, Industry, and Economic Development and the business association, the Principality of Asturias and the Asturian metallurgical employers’ association, Femetal, will work together on the Just Transition Fund. Femetal will set sector priorities for decarbonization, while the Government will outline funding calls aligned with the sector’s needs. If major projects require local contracts with small and medium-sized enterprises in Asturias, all available support will be provided to facilitate access to the Just Transition Fund and ERTE-related aid, according to the participants in the meeting. Antonio Fernández-Escandón, president of the metallurgical employers’ association, spoke on this behalf. The Ministry highlighted that the fund is a practical tool to help companies adapt to a low-emission economy. The Principality has been allocated 262.8 million euros from the Just Transition Fund, representing about 30.6 percent of Spain’s total allocation. The objective is to support the implementation of the European Green Deal and help reach a climate-neutral European Union by 2050.