29 July, 2024Over the past few days news of massive job cuts, bankruptcy and financial difficulties has hit thousands of Liberty Steel workers in Ostrava (Czechia), Częstochowa (Poland) and Dunaújváros (Hungary). Trade unions urge public authorities to take emergency action to save Europe’s strategic steel assets from collapse.
The situation at Liberty Steel’s continental steel facilities has been steadily deteriorating since autumn 2023. Last week, the situation took a dramatic turn with severe restructuring announcements, sending shockwaves among European steelworkers.
On 23 July, Liberty Steel management announced its intention to go forward with massive layoffs at its Ostrava plant in Czechia, by closing the coke ovens and halting the iron and steelmaking facilities. Up to 2,600 workers now face the risk of redundancy. With the company’s bankruptcy, there is uncertainty about paying notice periods and severance packages for dismissed workers. On 29 July, the Labour Office of the Czech Republic announced a support program including career guidance, retraining, and wage subsidies to help Liberty Ostrava workers who will face the threat of job loss.
In a letter to OS KOVO, IndustriAll Europe and IndustriALL Global Union expressed their solidarity with Liberty Ostrava workers in their fight to keep their jobs at the steel plant. They fully support OS KOVO’s call on Liberty Steel’s creditors, the Czech government, and the European Commission to take responsibility.
Other Liberty Steel operations also face extremely worrying developments. On 25 July, the District Court of Częstochowa declared the Polish Liberty steel plant bankrupt and appointed a receiver to take over plant management. The company has appealed the court’s decision. In Hungary, the one-off July bonus, collectively agreed upon in June with local unions at Liberty Dunaújváros, was not paid. Moreover, despite the June collective agreement foreseeing a pay rise, over 1,000 workers saw their wages cut by 30 per cent due to an imposed change in shift schedules.
IndustriAll Europe and IndustriALL Global Union condemn these decisions, which could irreversibly damage Europe’s strategic steel production capacities and threaten the livelihoods of thousands of workers and their families. Trade unions have made it clear that they refuse to let workers bear the brunt of mismanagement and the lack of effective support from public authorities.
Public action is urgently needed to safeguard Europe’s strategic steel assets from collapse. Policymakers must commit to a genuine Steel Action Plan.