Agence France-Presse reports that ArcelorMittal, struggling with the crisis in the European steel sector, has announced layoff plans affecting nearly 600 employees at seven plants in northern France. The company is relocating some of its support functions to India, while also anticipating serious cuts on the production side.
At a board meeting in Luxembourg, ArcelorMittal, the world's second largest steelmaker, announced plans to transfer 1,250 to 1,400 support roles in Western Europe to India and Poland. The plan targets sales, marketing and IT positions not directly related to steel production.
In France, there is a more extensive downsizing. Between 210 and 260 support jobs will be moved abroad, covering seven sites in Dunkirk, Florange, Basse-Indre, Mardyck, Mouzon, Desvres and Montataire. In addition, around 400 production positions will also be eliminated, making a total of more than 600 people redundant. In total, around 7,100 people work at these plants.
Unions reacted strongly to the decision. CFDT representative Jean-Marc Vecrin stated that they did not expect the meeting to be used in this context, while Gaëtan Lecocq of the CGT described the decision as an “industrial and social tsunami”. According to Lecocq, this step jeopardizes not only the workforce but also the safety of the plants.
Bruno Ribo, Managing Director of ArcelorMittal France, stated that the decision was difficult but necessary due to the structural crisis in the European steel sector. Adding that the final number of layoffs will be clarified during the consultation process to be initiated with the unions, Ribo stated that relocation opportunities within the group will also be evaluated.
On the other hand, it was reminded that the EUR 850 million support pledged by the government for the planned decarbonization investment in Dunkirk is contingent on the company's concrete steps. Industry Minister Marc Ferracci emphasized that close contact with ArcelorMittal is ongoing to realize the investment.
Comments
No comment yet.