No employees at Mittal Steel South Africa would be forcibly retrenched for the next year, the company said on Monday.
The no-forced-retrenchment agreement was first reached with Mittal’s three main trade unions, the National Union of Metalworkers of SA, Solidarity and the United Association of SA, in February 2004.
”The signing of this agreement, which follows from the one successfully implemented in 2004, establishes a stable and conducive organisational climate for Mittal Steel South Africa and its employees,” said Mittal chief executive Rick Reato in a statement.
”In terms of this agreement, the company will focus on the principles of natural attrition and voluntary separation packages to achieve its labour cost targets.”
The agreement also provides for the ”restructuring” and redistribution of employees.
”This agreement has over the last two years been of benefit to both the company and its employees whilst still providing those who want to pursue other opportunities an avenue to exit the company voluntarily,” he said.
The steel giant extended the 2004 agreement for another year in December 2006 following negotiations with the three unions.
Reato said the negotiations were evidence of the good relationship the company enjoyed with the unions. – Sapa