ArcelorMittal : Kryvyi Rih Raises Salaries for All Employees, Proposes a Three-Year Plan

ArcelorMittal Kryvyi Rih Raises Salaries for All Employees, Proposes a Three-Year Plan

July 30, 2021, Kyiv - As a result of a meeting with representatives of the trade unions, ArcelorMittal Kryvyi Rih announced today its proposal to raise wages for all its employees by at least 10% in two stages, on October 1, 2021 and May 1, 2022. Some categories will see a larger increase, up to 30%, to address the discrepancies identified by the trade unions after the most recent raise in May 2021.

To mark the successful performance of the company in H1 2021 and to celebrate the 77th anniversary of the plant, the company will pay out the 14th salary to all employees: 50% of their base salary on the Plant Day on August 4 and the remaining 50% at the end of the year.

AMKR proposed to the unions, which participated in the meeting, that over the following three years, 2022 through 2024, the company will raise wages for all employees twice a year, in May and October, by the percentage no lower than the official inflation rate in the previous year. During this period the annual raise in May will be equal to the official inflation rate of the previous year plus 1% minus the percentage of the raise in October last year. In October, the raise will equal at least 50% of the projected inflation rate plus 1%.

AMKR expects the official response from the trade unions next week, so that the proposal could be implemented without delay.

The rationale behind the three-year plan is to set clear rules for everyone, to ensure a continuous growth in production and to create conditions for a steady inflow of investments, sorely needed to modernize the production facilities, improve work safety and reduce impact on the environment, and to focus on other issues that are critical for the team.

"Financial stability is an important factor for our employees. With this in mind, we hoped to negotiate a three-year plan with the unions, which would give everyone an opportunity to plan their expenses and income in a transparent, predictable way," said AMKR CEO Mauro Longobardo.

"I do not share the 'us versus them' mentality that dominates among some employees and unions. I see all 21,000 of us as one team who share successes as well as challenges. In the first half of this year, the markets were favorable to us, and we would like all our employees to be able to celebrate this joint success," Longobardo said.

"Our goal is the continuous performance and growth of our company and the well-being and motivation of all our employees. We hope the unions that operate at our plant come to share our belief that a dialogue, rather than personal ambitions and manipulations, which delay the decisions that benefit ordinary workers is the way to achieve these goals in the best interests of the company and our people," - said Yulia Chermazovich, the Director for Industrial Relations and Social Development, who leads the negotiation with the unions.