ArcelorMittal stops production in Bosnia

ArcelorMittal suspended production at its Bosnian steel plant and the mines that supply it with iron ore for 10 days due to falling demand caused by the lockdown in response to the coronavirus pandemic, and sent 80% of its workers home. ArcelorMittal Zenica said that since the outbreak began, its management has taken measures to cut costs, procure protective equipment and renegotiate gas and electricity prices with its suppliers.

The plant said it had offered to cut executive salaries from 10% to 20%, but unfortunately these measures were not enough to keep production going. The iron ore mines in Omarska in northwestern Bosnia also said they were hit by the crisis, and the company responded with a series of measures, including laying off workers.

But the unions of the company rejected this offer. Unions at the Zenica plant denied that there was a drop in demand and accused management of trying to secure subsidies and minimum wage payments to the regional government in accordance with a special law passed to protect the economy from the effects of the coronavirus. Union head Zuhdia Kapetanovich said 800 of the planned 1,000 workers had already been laid off, urging them not to sign documents on voluntary dismissal. He said that their wages will be almost halved and they will seek legal protection.

The steel mill employs about 1,400 workers in Zenica and 800 in Omarska. The steel company has an annual production of about 1 ml tons.