Brazil steelmaker Companhia Siderurgica Nacional (CSN) received Friday a few more days from the nation’s labor ministry to take a final decision on whether it will readjust or not the workers’ wages, as thousands threat the company to go on strike if a deal isn’t reached.
CSN said in a statement that its request, which is viewed by the workers and local unions as an excuse to postpone a decision on 2015-2016’s collective agreement, was motivated by the challenging scenario the nation’s steel segment is currently facing.
“Considering Brazil’s current economic moment and all the difficulties that the [local] steel sector has faced, the company, always seeking a responsible way to overcome this adverse situation, has requested the labor ministry and the [local metal workers] union a new deadline, which expires this Monday, September 21, to present a proposal for the renewal of the collective agreement,” it said.
A local union the workers were “disappointed” with the decision, since they expected a response from the company within this Friday. The union said that if an agreement isn’t reached, the company’s workers will go on a strike.
“We’re ready for a strike. Just in Volta Redonda, where CSN has [its main] mill, the workforce is of about 10,800 employees, plus another 5,000 contractor workers. In all Brazil, CSN has some 20,000 workers,” said Silvio Campos, president at the Sul Fluminense metal workers union.
The workers claim a readjustment in their wages from May this year on. The readjustment should take into consideration the inflation occurred in the May 2014 to the April 30, 2015 period, of about 8.3 percent, plus a 10 percent increase in one of the benefits, the food card, the workers receive, among other items, the union said.
CSN hasn’t been the only Brazilian steelmaker to face the pressure of local unions and the threat of strikes.
Recently, about 3,000 contractor workers at Brazilian steelmaker Usiminas have ended a strike that lasted for 26 days.
The contractor workers of the Usiminas Cubatao mill in the state of Sao Paulo ended the strike after reaching an agreement with the company, in which the contractor workers will receive a 10 percent salary adjustment. The workers were asking for a readjustment of 15 percent in their wages.
In addition to the negotiations it has with the workers and local unions, CSN is also dealing with accusations of damages to the environment in the Volta Redonda area.
Recently, Brazil’s public ministry (MPF), a body of public prosecutors, proposed in a public civil suit the suspension of the operations of three sintering units at a Companhia Siderurgica Nacional (CSN) plant.