Turkish integrated steelmaker Erdemir has announced that it has agreed with unions on a 35 percent cut in employees' wages both at Erdemir and at its biggest subsidiary Isdemir. According to the proposal, the 35 percent wage cut will take effect as of May 1, 2009 and last until August 31, 2010.
According to the agreement, wages and other rights attached to them will be cut by 35 percent; however, monetary and non-monetary benefits will not be affected by the cut. All conditions of the deal will be implemented for all staff, including those who are not covered by the collective agreement, as well as for top level executives.
In a letter filed to Istanbul Stock Exchange (IMKB), Erdemir pointed out that many measures have been taken at the company as well as at Isdemir to minimize the impacts of the losses stemming from the global economic crisis, which is gradually expanding, making it impossible to guess when it will stop.
"In addition to the various measures that have been taken, labor unions and employers that are the parties to the bargaining have agreed on the amendment of some articles of the collective agreement for 16 months, also considering the consultations with our workers within the framework of the current conditions," added the statement.
The agreement is seen as an alternative to the dismissal of many workers, and is the first such agreement to be implemented in the country in such a scale.