Management at the steel producer ArcelorMittal has decided to extend the existing employment regulation file (ERTE) unilaterally. The new extension will run beyond the current period and is set to end on Sunday. The decision was announced this morning after the negotiation window closed without any agreement or alignment between the company and the unions. In short, the stalemate prompted management to extend the ERTE as a measure to weather ongoing market challenges.
The company continues to operate under the same temporary employment framework that has been in place. As of October 3, both ArcelorMittal and the unions UGT, CCOO, and USO had agreed to implement ERTE for a three-month period because of poor job prospects. That same rationale is now guiding the extension decision through the end of 2024, maintaining continuity with the previously authorized period. This approach reflects concerns about demand fluctuations and the need to preserve cash flow while protecting as many workers as possible from complete layoffs.
ERTE for productive reasons, which until now had been used primarily for economic and production-related factors, will apply to approximately 6,500 workers across Spain. This scale highlights the breadth of the program and its impact on staffing across multiple facilities during periods of reduced workload.
Regional specifics remain in place: in Asturias the working day deduction is set at 15 percent, Sagunto in Valencia continues at 5 percent, and Etxebarri in Biscay faces a 50 percent deduction. In the Navarrese sites of Lesaka and Lagasa, deductions are 35 percent and 20 percent respectively, while ArcelorMittal Distribución and Distribución Norte face a 40 percent reduction. Legasa, which processes flat carbon products, sits at 20 percent for AMDS Processing. These percentages illustrate how the ERTE is applied unevenly, tailored to the operational realities of each plant and its role in the overall production chain.
In terms of compensation, ArcelorMittal will cover 90 percent of gross salaries and 100 percent of extraordinary wages and leave, aligning with the standard ERTE protection framework. This arrangement aims to cushion workers against income disruption while the company navigates continued volatility in demand and supply chains. It is important to note that the current conditions take into account not only the calendar quarter but also the specific production schedules of each facility. The plan applies only to facilities forced to halt activity due to insufficient workload, and only the affected plants experience the proportional reductions. Contract suspensions are structured to avoid affecting social benefits or other worker entitlements that are typically included in compensation packages.
Unions have criticized the unilateral extension, expressing concern about the lack of negotiated consensus and the potential long-term implications for workforce stability. The ongoing disagreement underscores the tension between management’s need to stabilize operations and labor representatives’ emphasis on transparent, collaborative decision-making that safeguards workers’ rights and livelihoods.