Mauro Longobardi: Salaries must be fair and in line with the market

Leaders of ArcelorMittal Kryvyi Rih discussed salary increases with heads of trade union organizations Kryvyi Rih, March 30, 2021 Representatives of 11 trade unions uniting workers of ArcelorMittal Kryvyi Rih , met with CEO Mauro Longobardi and HR Director Yulia Chermazovich to discuss the salary increase scheduled for May 1 this year. The meeting was also attended by the financial director of the company Sergey Plichko and the deputy general director for legal issues, interaction with government bodies and communications Artem Filipyev. “We fully share the desire of trade union organizations to ensure fair wages for our employees. That is why, with the help of Hay Group specialists, we conducted a detailed analysis of salaries in the metallurgical industry and revised the amount of salaries. None of our employees will receive a salary lower than the level determined by the market, ”said Mauro Longobardi . Already, the level of the average monthly salary at ArcelorMittal Kryvyi Rih is 64% higher than the average salary in Ukraine, and 10% higher than the average salary in the metallurgical industry. Over 4,000 employees (23%), the company has raised wages by an average of 12% over the past two years. From May 1 of this year, all employees of the company are guaranteed to receive at least 5% more than before. For a number of positions and specialties, wages will rise and more to match the realities of the market. The company spends more than UAH 700 million on increasing salaries and paying the 13th salary in March this year, in fact, an amount equivalent to the amount of net profit in 2020. Despite the coronavirus pandemic, ArcelorMittal Kryvyi Rih fully fulfilled its obligations under the Collective Agreement. In particular, the company paid UAH 4,500,800,000 in the form of salaries, UAH 424,800,000 invested in the social development of the team, UAH 308,700,000 – in labor protection and 8400000 UAH – in employee training. In addition, the company spent 16,500,000 UAH to prevent the spread of COVID-19, in particular, paid for testing for employees. ArcelorMittal Kryvyi Rih has purposefully worked to preserve the workforce. While the unemployment rate in Ukraine increased by 53% * at ArcelorMittal Kryvyi Rih, staff outflow was halved. In general, in Ukraine, the duration of unpaid vacations has doubled, and the Employment Center received 91% more requests than in the previous year. At the same time, by closing outdated production workshops, in particular the open-hearth workshop and blooming mill, ArcelorMittal Kryvyi Rih found opportunities for 400 employees to work in other areas, and only 30 employees did not accept this offer. “Not every enterprise in Ukraine can boast of such an open and honest dialogue with employees, which we practice at ArcelorMittal Kryvyi Rih,” said Yulia Chermazovich . “It is important that people know the real state of affairs in the company, in the industry and in the country’s economy. To understand what huge investments are required to modernize the enterprise, improve environmental standards and working conditions. And the main thing is that they know how much we value each member of our team and how we fight to preserve every job, especially during a pandemic and economic downturn. ” The company invites unions to return to discussing next steps after Hay Group releases an updated wage analysis based on Q2 results. * Source:

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