Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Covering an area of approximately 40 hectares, Mittal Steel Iasi has an annual production capacity of 380,000 tons and employs 1,400 people. The company produces a variety of products for both local and international markets.
As in the Hunedoara (Vest region) and Roman (Nor-Est) subsidiaries of Mittal Steel group in Romania, a ‘voluntary redundancy' programme was launched and the management expects that at least 500 employees from the Iaşi subsidiary will leave the company and receive the proposed redundancy payment.
Trade unions' views differ. They believe only 100 employees are likely to make redundancy applications. Moreover, they are dissatisfied with how the management chose to proceed with redundancies and the fact that they failed to negotiate a new collective agreement. According to the privatisation contract, the management of Mittal Steel Iasi does not have the right to operate redundancies until January 2006. In the opinion of the trade union leader, a few hundred workers will certainly be laid off in 2006 but will not receive the pay provided through the current voluntary redundancy programme.
Eurofound (2005), Mittal Steel Iaşi, Internal restructuring in Romania, factsheet number 61868, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/61868.