CSN cuts jobs at iron ore plant; Usiminas mill in Ipatinga not affected by layoffs

Thursday, 21 January 2016 23:18:46 (GMT+3)   |   Sao Paulo
       

Brazil steelmaker Companhia Siderurgica Nacional (CSN) has laid off 230 workers at its Congonhas iron ore plant, in the city of same name, in the state of Minas Gerais.

A local union said the company initially expected to cut 950 jobs, but the workers’ representatives asked the help of local mayor, José de Freitas Cordeiro, to intervene in the situation and prevent the massive layoffs.

Local union Metabase said CSN sent a letter in January 11 saying it would reduce its workforce by 20 percent, which would result in the loss of 950 job positions. Just after the letter was sent, the job cuts started immediately, the union said.

The company attributed the dismissals to the low iron ore prices. 

Usiminas, another major steelmaker in Brazil, told local media this week it won’t make any adjustments in output in the short term at its Ipatinga mill, in the city of same name, in the state of Minas Gerais.

The company said the Ipatinga mill has more advanced production lines, which helps the steelmaker to avoid cutting output at the unit. Usiminas idled a blast furnace at its Ipatinga mill last year from May to June.  

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