Force majeure temporary employment regulation file (ERTE) adopted by ArcelorMittal and CC OO, UGT and USO unions for their factory in the cluster known as Asturias, approved by the labor authority because of the fire on 22 March at blast furnace A in Gijón. The measure covers a group of 5,700 workers and takes effect from 1 April.
The Asturias Cluster groups mills in the region and other Spanish facilities dependent on intermediate products from Asturias steelworks, including Sagunto, Etxebarri, Lesaka and Legasa. It employs about 7,000 workers altogether. In Asturias itself about 4,900 workers are affected, with the ERTE primarily impacting the personnel tied to the damaged furnace and its associated sinter, and not the so-called structural workers of roughly 500 who are not directly involved in production. The measure also affects the Avilés steelworks and the wire rod plant in Gijón as well as tin operations in Avilés.
The agreed ERTE sets a six-month period, a rough estimate based on the repair timeline for the burned blast furnace, and guarantees 90 percent of gross salary plus all additional payments and holidays, regardless of the duration of the suspension of contracts.
The agreement between companies and unions to temporarily regulate employment for workers affected by the drop in pig iron production introduced a new convergence scenario, supplemented on Tuesday by the agreement among UGT, CC OO and USO. The Asturias plant remains subject to a state-level consensus framework and to a one-year negotiation after the initial agreement.
A new negotiation session for the framework agreement took place on Thursday, but no agreement emerged. UGT called the development a positive sign yet deemed it insufficient. CC OO labeled the offer unsatisfactory and rejected it outright, urging members in the Asturias factories to join a strike planned for Monday. USO described the proposal as lackluster and inaction, while CC OO warned of gaps in the broader business approach, especially in terms of aid contracts, social provisions and the lack of salary improvement in the offer.
salary hike
The company proposed a 4.7 percent salary increase for 2022 for compensation unpaid since January 1 of the previous year, plus 1 percent of the total annual gross for the prior year in an unconsolidated payment. For 2023 the increase would be 3 percent with unsettled balances from January 1; for 2024 the increase would be 2.5 percent and for 2025, 2 percent. Variable pay for 2023, 2024 and 2025 would be based on performance tables of about 1.5 percent, with some elements potentially not being consolidated depending on defined success targets. The company has pledged to preserve purchasing power in line with CPI at the end of the contract period, and to cover any differences arising in the later years in 2026 figures.
Regarding staff separation, it was announced that a formula would be proposed for personnel born in 1962 under the same terms as earlier agreements, continuing until social accords on decarbonization investments are achieved, along with an improvement in paid leave.
UGT pressed for more concrete measures, USO warned that time was running out to reach a deal, and CC OO criticized the business approach, particularly in relation to aid contracts and social considerations, while stating that the economic offer did not translate into a real salary improvement.
The company is investing in extending the life of one blast furnace in Poland
ArcelorMittal Poland has halted production of one of its two blast furnaces in Dabrowa to modernize the installation and extend its service life, with investment exceeding 720 million. The group did not commit to extending the life of the Gijón blast furnaces, citing depreciation challenges under new environmental regulations. Instead, the plan proposed involves a 1,000 million investment to replace the Gijón furnace with a direct reduction plant using green hydrogen and a hybrid electric arc furnace aimed at cutting emissions. Resources available to ArcelorMittal indicate that securing a competitive green hydrogen supply is more challenging in Poland than in Spain due to lower solar utilization. As a result, the Dabrowa plant’s second blast furnace will receive the investment focus. [Citation: ArcelorMittal]**