ArcelorMittal, Spain ink temporary layoff plan

BRUSSELS: ArcelorMittal, the world's largest steelmaker, said on Wednesday it has reached a deal with the Spanish government for temporary layoffs amongst its 12,000 Spanish workforce.

Wednesday's agreement is valid through the end of the year and may be extended through June 1, 2010, depending on market conditions, ArcelorMittal said.

Arcelor said it has not yet sent any of its Spanish workers home but is currently evaluating its Spanish plants to see where temporary layoffs should be made.

"This temporary lay-off plan will enable the company to adapt the activity of each plant to the actual volume of orders they are receiving," ArcelorMittal said in a statement.

Employees who are sent home temporarily under the plan will receive 90 percent of their gross salary while not working, which would be paid partly by Spain's public unemployment service and partly by ArcelorMittal.