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11 January, 2010
The world’s biggest steelmaker announced to workers and trade unions at its December European Works Council (EWC) that the company likely will continue to reduce its global workforce in 2010. Trade union projections suggest that ArcelorMittal plans to cut some 10,000 jobs, or 3.5% of its total global workforce, as the company seeks cost savings of US$500 million.
Arcelor Mittal currently employs 285,300 people worldwide. The Luxembourg-based company aims to regain lost market share. Company spokesman Bill Steers told the EWC at a plenary meeting on 9 December that “global workforce reductions [will be] due mainly to natural attrition and optimisation of production.”
The company has said that most of the cuts will affect US and Europe, where its growth potential is limited. ArcelorMittal workers in South Africa were relieved to be told that the announcement of 10,000 job losses would not affect them. Some of ArcelorMittal's facilities in the U.S. and South America are struggling, particularly those producing flat rolled steel for the auto industry.
Dave McCall, District 1 director for the ICEM-affiliated United Steelworkers (USW), said the union did not expect mass job cuts in the US, as demand there is picking up some in the wake of the financial crisis.
Overall, demand for steel is rising again, after most steelmakers took a major hit in 2009 and were forced to cut their production in response to a slump in demand. ArcelorMittal has put a bid down on Zimbabwe's Zisco; it has invested in a mill in India; and is looking at further Brazilian operations to match iron-ore supplies there. The company has operations in 60 countries around the world.
The cuts are expected to affect workers who were temporarily laid off at plants idled last year.
The company had originally planned to eliminate 9,000 positions in its administrative and commercial functions during 2009, but ended up cutting 36,000 jobs, of which 50 percent were in Europe.