Mittal Steel Company has rejected demands made by Polish unions at the Czestochowa steel mill, which the global steel giant said were the sole obstacle to its acquisition of the steel works in southern Poland.
“After six weeks of negotiations, the trade unions are still insisting upon a privatisation bonus of 7500 zlotys (1,800 euros, 2,500 dollars), minimum 15 years of employment guarantee and 500 zlotys increase of the average salary in the company,” Mittal said in a statement on Thursday.
“The demands of the unions have been to a large extent unreasonable, particularly in light of the fact that without privatisation the company is facing the threat of bankruptcy,” the statement said.
Meeting the demands of the unions would cost Mittal “in excess of 100 million euros”, according to the statement.
“These kinds of demands… do not make good economic sense and would further deteriorate the financial situation of Huta Czestochowa,” said the steel giant, while offering the Polish unions salary increases of 150 zlotys, a privatisation bonus of 2,500 zlotys, and job guarantees until December 2010. Employees over the age of 55 have been given a 10-year job guarantee.