Romanian ArcelorMittal Galati Mulls Voluntary Layoffs

Ionel Bors, ArcelorMittal Galati’s senior manager, did not specify the exact number of persons to be laid off, or the period in which they would leave.

On the other hand, union leaders said that over 1,500 employees would be willing to leave, due to the difficult jobs and low salaries, among others.

Employees subject to voluntary layoffs will get severance payments.

ArcelorMittal Galati currently employs approximately 14,000 people, half compared with the fall of 2001, when the plant was privatized.

Due to the privatization clause banning layoffs for five years, the company offered financial compensations to employees willing to leave, in several stages.

ArcelorMittal Galati closed several production units recently, due to the lower demand of steel products on the international market.

ArcelorMittal (MT), the world’s largest steelmaker, announced early November it will cut production by at least 30% in the last months of the year, due to the international financial crisis, which triggered a slump in demand.

The group owns four steel plants in Romania, in Galati, Iasi, Hunedoara and Roman, harbor operator Romportmet Galati and the local unit of construction company ArcelorMittal Construction.