Romania ArcelorMittal Hunedoara Employees Can Register On Layoff Lists As Of Dec 16

Employees of Romanian steel mill ArcelorMittal Hunedoara, a unit of UK-based giant ArcelorMittal Group, can register on layoff lists between December 16, 2008 and March 31, 2009, the company's union leader, Petru Vaidos, said Tuesday.

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According to Vaidos, the employees to be laid off will receive severance payments ranging from 10,000 lei (EUR1=RON3.9249) to RON25,000, based on their seniority and monthly salaries, as stipulated in the collective labor contract.

However, the company will no longer grant salaries to employees with a seniority of up to five years, as they will only receive severance payments of RON10,000 each, while those with a seniority of five to ten years will receive their salaries for a six-month period after they are sacked, beside the severance payments.

Employees with a seniority of ten to fifteen years will receive their salaries for a nine-month period, those with a seniority of fifteen to twenty years will receive their salaries for a twelve-month period, while employees with a seniority of twenty to twenty-five years will receive their salaries for a fifteen-month period.

Employees with a seniority of twenty-five to thirty years will receive their gross salaries for an eighteen-month period.

Arcelor Mittal Steel Hunedoara halted production at the middle of October for nearly two months, in the fallout of the economic crisis and its 1,200 employees were gradually put on leave in November.

The company’s management said no employees would be laid off until the end of 2008.

ArcelorMittal Group(MT), the world's largest steelmaker, said early November it would cut production by at least 30% in the last months of the year, in the fallout of 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, as well as the local unit of construction company ArcelorMittal Construction.

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