ArcelorMittal Temirtau to raise wages by 7.4%
KARAGANDA. May 21 (Interfax) - The management ArcelorMittal Temirtau, a division of steel major ArcelorMittal, plans to raise wages for its miners in line with the level of inflation for 2011.
ArcelorMittal Temirtau said in a statement that management is proposing to index rates and salaries by the full level of inflation for 2011, or 7.4%, as of May 21 (under the collective agreement, indexation is carried out in two stages, in January and July); introduce an additional monthly bonus of 2.6% if the monthly target for shipments is met (265,000 tonnes or more); and return to negotiations on wage increases on September 1, 2012.
Union leaders have not agreed to the management's proposal, but the company is prepared to continue negotiations with unions, the statement said.
ArcelorMittal Temirtau workers held a rally in the city of Temirtau on Saturday to demand higher wages.
"The rally by steelworkers and miners took place within the bounds of the law. JSC ArcelorMittal Temirtau human resources director Dmitry Pavlov spoke at the rally on behalf of management," the company said.
"This week we reported on the results of the company's operations in the first quarter of 2012. Shipments of finished product fell by 8.8% compared to last year amid weak demand on export markets. We lost the biggest market in the Middle East, and the crisis in Europe has led to stiffer competition and a decline in prices for steel products. In this situation, demands for higher wages must correspond to the company's realistic abilities," Pavlov was quoted as saying the statement.
ArcelorMittal Temirtau is Kazakhstan's largest mining and metals company, with a steel plant in Temirtau, eight coal mines in the Karaganda region and four iron ore mines in the Karaganda, Akmola and Kostanay regions.