Steel Mills
Ilva Labor Deal Moves ArcelorMittal Purchase Toward Completion
Written by Sandy Williams
September 5, 2018
ArcelorMittal has moved closer to finalizing its acquisition of Italian mill Ilva Steel. The company announced on Thursday that it has reached a provisional labor agreement with Ilva’s trade union.
The agreement includes a commitment to employ 10,700 workers through 2020 based on their existing employment contract, as well as another 2,000 that remain employed under a separate agreement through 2023.
“The agreement we have reached with Ilva’s unions meets the two major objectives we set out at the start of negotiations: to find an acceptable solution for every employee at Ilva, and to reach an agreement that reflects Ilva’s economic reality and provides a sound base for it to have a sustainable future,” said Geert Van Poelvoorde, CEO of ArcelorMittal Europe Flat Products.
ArcelorMittal expects to complete the Ilva transaction by Nov. 1, 2018. Finalization of the purchase of Ilva will trigger ArcelorMittal’s commitment to shed other European assets under terms of the agreement.
Ilva will run out of government funding later this month, and with the labor agreement resolved Deputy Prime Minister Luigi Di Maio said that he will no longer oppose the purchase. Di Maio is a member of 5-Star Movement that sought to close down the plant over environmental issues. ArcelorMittal has pledged under the transaction agreement to make investments in the plant to bring it into environmental compliance.
“The deal means that public interest will not be served by annulling the tender,” said Di Maio.
Sandy Williams
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