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ArcelorMittal workers in Kazakhstan continue to struggle for better wages

7 March, 2012In October 2011 miners and metalworkers at ArcelorMittal Temirtau (Kazakhstan) demanded a 30 per cent wage increase. Their demands are still not met. On February 25 the workers held a conference and decided to hold a rally on March 10. They will also push for the changes in Kazakhstan laws, which prohibit strikes at plants with continuous working cycle.

KAZAKHSTAN: In October 2011 miners and metalworkers at ArcelorMittal Temirtau (Kazakhstan) demanded a 30 per cent wage increase. Five months later, their demands are still not met. On February 25 workers held a conference and decided to hold a rally on March 10. They will also push for the changes in Kazakhstan laws, which prohibit strikes at plants with continuous working cycle.

According to the management, in the first half of 2011 wages have averaged 115,600 tenge (US$780) in the steel department and 128,700 tenge (US$870) in the coal department.

In October-November 2011 an industrial dispute continued at ArcelorMittal Temirtau. Unions suggested a compromise: wages could be raised in several steps, with an overall increase of 30 per cent achieved in July 2012. This offer was also rejected by the employer.

Metalworkers' union Jaktau and miners' union Korgau submitted applications to hold a rally to local authorities on three occasions, each time their application was rejected.

Following the proposal of Serik Akhmetov, akim (mayor) of the Karagandy area, the negotiations were postponed until January 15, 2012, due to the celebration of the twentieth anniversary of Kazakhstan's independence as well as extraordinary elections of local representative bodies.

On January 25 the administration announced 3.7 per cent wage readjustment, only 50 per cent of the inflation level in Kazakhstan. In late January the unions made a new offer -- to make full readjustment (7.4 per cent), implement 10 per cent wage hike and sign an agreement to achieve 30 per cent increase in wages in 2012.

At the workers' conference another compromise was suggested -- make full readjustment,  rise wages by 10 per cent and then continue negotiations.

Speakers at the conference noted that production results in 2011 were positive, with iron sheet production raised by 7.7 per cent.

The delegates agreed to take action on March 10 with two urgent demands -- to rise wages of ArcelorMittal metalworkers and miners and introduce changes in Kazakhstan laws, which prohibit strikes at plants with continuous working cycle.

"We have the right to demand wage increase. Indeed, it's us, steelmakers, blast-furnace workers, miners and shaft workers, who ensure permanent rise in production and profits, while we work with staff shortages, take overtime, go to work on weekends," states the address, adopted by the delegates of the conference on Feburary 25.

ArcelorMittal Temirtau is part of the multinational ArcelorMittal. It is the biggest metal company in Kazakhstan, uniting a metal plant in Temirtau, eight mine shafts in Karagandy area and four iron-ore mines in Karagandy, Akmola and Kostanay areas. The company employs over 42,000 people.