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August 2, 2018 12:00 am | FILED UNDER: business

ArcelorMittal Ostrava Sale ‘Untrustworthy And Non-Transparent’: Trade Unions

By ČTK ArcelorMittal Ostrava Steel Production Line

Ostrava, North Moravia, Aug 2 (CTK) – Trade unions consider the current process of sale steel company ArcelorMittal Ostrava (AMO) untrustworthy and non-transparent for employees and they demand further information from parent company ArcelorMittal, ZO OS KOVO union chairwoman Alena Sobolova told CTK today.

 

The unions want ArcelorMittal to provide them in writing with the names of all companies that have submitted binding bids for the purchase of AMO.

 

According to today’s issue of daily Pravo, there are two bidders, British Steel and India’ Liberty Steel.

 

In May, the European Commission approved a takeover of Italy’s Ilva, the biggest steel maker in Europe, by ArcelorMittal, the world’s number one steelworks, on condition that the group sells AMO and some other units in Europe to provide guarantee that Ilva’s acquisition will not violate economic competition and will not cause a price hike.

 

The trade unions demand that they be engaged as a consulting partner in the process of AMO’s sale, Sobolova said.

 

The unions also demand guarantees of AMO’ future operation for at least five years after the sale as well as guarantees of employment and the volume of production, which should reach at least 2.2 million tonnes a year.

 

The state should be actively involved in the matter, according to the unions.

 

According to Pravo, citing AMO union leader Vitezslav Prak, British Steel is the only one to have held talks with trade union representatives.

 

“The ArcelorMittal group has received the trade unions’ demands and will respond after studying them,” AMO spokeswoman Barbora Cerna Dvorakova told CTK.

 

ArcelorMittal group is active in more than 60 countries.

 

AMO and it subsidiaries have a 7,000-strong workforce. The group produces over two million tonnes of steel mainly for the building and engineering industries annually, exporting its products to more than 40 countries.

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