ArcelorMittal agrees with union on voluntary dismissals at its Tubarão mill

Friday, 25 September 2020 20:43:54 (GMT+3)   |   Sao Paulo

ArcelorMittal Brazil, the local subsidiary of ArcelorMittal, has agreed with a local union on a voluntary dismissal program at the company’s Tubarão mill, in the state of Espírito Santo, SteelOrbis has learned.

According to a document obtained by SteelOrbis, employees can join the program from September 26 to October 20. ArcelorMittal Brazil did not disclose in the document how many workers it expects to dismiss. The measure comes as the company seeks to reduce its workforce to cut costs amid the pandemic.

ArcelorMittal Brazil said for those joining the voluntary dismissal program, it will pay all benefits required by Brazilian law, including dismissal indemnities plus a 40 percent bonus of the employee’s wage basis, among other variables, whose final result cannot exceed eight times the worker’s base salary.

The company said it may also launch an “involuntary” dismissal program if the existing “voluntary” one doesn’t meet the company’s goal in terms of reducing its workforce.

ArcelorMittal Brazil said the dismissal program is aimed at its flat steel business.

Most Recent Related Articles

Vale’s CSP gets international certification, eyes US automotive market

Brazilian flat steel distributor sales increase 39 percent in September

CSN asks securities regulator permission to launch mining IPO

Brazilian crude steel production increases 7.5 percent in September

CSN's S&P outlook revised to positive