On Thursday 13 January 2022, the investment and workforce monitoring committee met, as agreed in the LUX 2025 steel industry tripartite agreement, to ensure compliance with the agreement and make an interim report.
According to the LCGB trade union, the management of ArcelorMittal, a leading steel manufacturer headquartered in Luxembourg, presented the current status after one year of application of the tripartite agreement. This presentation reviewed the state of progress of the various objectives targeted in terms of investments and reorganisation but also of the various support measures.
It was split into three parts: investment, outsouring and the evolution of overstaffing and support measures.
Investment
ArcelorMittal has committed to a budget of €165 to €205 million with, as a distribution key, €90 to €95 million for key and strategic investments, and around €110 million for the maintenance of the tool. A minimum guaranteed amount of €65 million has been agreed on strategic investments. In the event of non-compliance, a financial recovery clause has been agreed.
The LCGB observed that this essential component for the survival of the Luxembourg steel industry has been respected to this day. The steel company's management presented a commitment of €41 million out of the overall budget planned. One-fifth of the total budget has been effectively committed and respected. The LCGB took the opportunity to highlight various important points related to key and strategic projects.
Moreover, the LCGB has requested clarification regarding the intention to develop a new building in Luxembourg-Kirchberg, which will then house the company's headquarters.
Regarding the Dommeldange site, the investment linked to the transfer of two essential activities to the Differdange and Rodange sites has been confirmed by the ArcelorMittal Group, which will make it possible to internalise the activity with personnel specific to the company as agreed in the agreement. However, the LCGB again reiterated its request to respect the agreement regarding the support of the various production sites with a view to strongly supporting the remaining activities within the Dommeldange site.
Outsourcing
Two of the initial major outsourcing plans have been abandoned, which implies the retention, within the company, of workstations, up to 31 people, as well as consequent activity.
Evolution of overstaffing and support measures
The LCGB noted that, to date, 345 workstations have been eliminated out of the 536 initially planned. This corresponds to approximately 65% of the initial objective. A certain rush for downsizing is apparent over the one-fifth of the duration of the agreement, mainly linked to reorganisations, half of which come from central administration. Even if the agreement is respected, the union noticed a clear trend inversely proportional to the evolution of the substantial expenses in terms of investments (20% of the objective).
The redeployment unit currently includes around 82 people linked to the 2021 unit resulting from the LUX 2025 agreement. The LCGB emphasised the importance of not delaying in finding a lasting solution for around 60 employees identified as being on assignment and unemployed.
In view of the significant needs for the renewal of skills, the management of overstaffing and the adaptation of the age pyramid, the unions have declared themselves in favour of a continuation of the early retirement adjustment for employees born in 1966 and 1967. The management of the company was not in favour of this idea and, according to the LCGB, has no intention of applying for it.
Finally, the general management discussed the evolution of energy prices and proposals aimed at mitigating the impact on the operation of the factories. In the event of continued price increases, ArcelorMittal would like to be able to call on state support for this economic situation. In addition, the company has requested the support of government ministers for the reimbursement of indirect costs related to CO2 emissions for the 2021 financial year.
The LCGB stated its opinion that the ArcelorMittal Group must become aware of the profitability and performance of Luxembourg production sites by redistributing the wealth produced by the Luxembourg steel industry and above all by recognising, at its truest value, the skills and commitment of the employees who make it possible to achieve these performances.
