Mittal's Czech unit to cut 1,000 jobs
The Czech unit of Mittal Steel Co, the world's largest steel company, plans to eliminate about 1,000 workers to boost productivity closer to western European norms.
By Agencies |
AMSTERDAM: The Czech unit of Mittal Steel Co, the world's largest steel company, plans to eliminate about 1,000 workers to boost productivity closer to western European norms.
Mittal Steel Ostrava AS is the biggest Czech steelmaker and currently employs 8,860 people.
Profit in the year to February 28 sank 45 per cent to 4.6 billion koruna ($205 million) as demand and prices declined and because of accounting changes.
``The company still doesn't reach the productivity of western companies and not even the European average,'' Mittal Steel Ostrava's personnel director said. ``We want to and need to reach a higher effectiveness.''
Employees who agree to leave will receive a severance payment equal to between 12 and 32 months of their average salary, spokeswoman said on Thursday.
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To be eligible for the money, Mittal workers have to ask to leave between July 17 and August 4, with the condition that their contract would expire by August 31.Mittal Steel Ostrava made a similar offer in 2004, when 1,729 employees took up the offer and left the company.
The company is offering the same for employees of its unit, Vysoke Pece Ostava, which will merge with Mittal Steel Ostrava this year. Vysoke Pece employs 960 at the moment.
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