ArcelorMittal aims to finalise payments to workers by month's end

Sunday, March 13, 2016 - 20:00

ArcelorMittal says it hopes to settle termination payments by the end of this month and says it has no intention of appealling the decision of the Industrial Court last week.

The company says the payments will be close to three-month's salary and will be in accordance with the collective agreements

The company issued the following statement this afternoon:

"This afternoon the Management of ArcelorMittal Point Lisas met with Senator the Honourable Jennifer Baptiste-Primus, Minister of Labour to discuss the announcement of last Friday concerning the closure of ArcelorMittal Point Lisas due to the economic situation and the financial situation of the operation.

The Company had an open, thorough and transparent discussion with the Honourable Minister and explained the reasons why this decision has regrettably become necessary. The Company re-iterated its offer made in December 2015 to sell the plant to the Government for a token amount.

About ArcelorMittal

The Company also informed the Honourable Minister of Labour that contrary to reports, the Company does not intend to appeal the Industrial Court ruling of last Thursday. The Company will be paying all amounts to employees that they are legally entitled to receive following this ruling.

The Company detailed the benefits that would be paid, which will include the termination payments such as stipulated in the collective agreements and employee contracts which range between 1 and 2 months as well as the pay out as a consequence of the Judgment and all accrued vacation.

Therefore employees will receive in excess of 2 month’s pay and on average closer to 3 month’s salary. Payments on the above will begin as early as possible and the Company will endeavour to make all payments by month end.

Furthermore as indicated in the press release on Friday, the ArcelorMittal group is considering whether workers could benefit from the liquidation proceeds that the group is entitled to as a creditor."