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5 February, 2006Agreement with Arcelor on core labour standards must be maintained, argues IMF in response to Mittal Steel's hostile takeover bid.
GLOBAL: The IMF expressed concern about Mittal Steel's bid for Arcelor this week, wanting assurances the International Framework Agreement (IFA) on respecting core labour standards signed by Arcelor and unions will be maintained or extended.
Last month, Mittal Steel, the world's largest steel maker, made an unsolicited bid to buy out European steel maker Arcelor. Speaking on the issue, Rob Johnston IMF director for steel said the stakes for workers are high because there is a genuine fear of what the future will hold.
"In their dealings with both companies unions have had both good and bad experiences. However the IMF has successfully negotiated an IFA with Arcelor. This agreement gives us greater confidence that Arcelor will respect core labour standards in its operations throughout the world," said Rob Johnston.
"While many of our affiliates tell us that their experience of Mittal Steel has shown the company to be fair and reasonable, in some cases Mittal's ownership has precipitated job losses," he said.
"Despite a difference in opinion on the bid between European and North American unions, all IMF affiliates agree that job security and workers' rights remain the most critical issues," he said.
Last month, Mittal Steel, the world's largest steel maker, made an unsolicited bid to buy out European steel maker Arcelor. Speaking on the issue, Rob Johnston IMF director for steel said the stakes for workers are high because there is a genuine fear of what the future will hold.
"In their dealings with both companies unions have had both good and bad experiences. However the IMF has successfully negotiated an IFA with Arcelor. This agreement gives us greater confidence that Arcelor will respect core labour standards in its operations throughout the world," said Rob Johnston.
"While many of our affiliates tell us that their experience of Mittal Steel has shown the company to be fair and reasonable, in some cases Mittal's ownership has precipitated job losses," he said.
"Despite a difference in opinion on the bid between European and North American unions, all IMF affiliates agree that job security and workers' rights remain the most critical issues," he said.