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Gerdau-Cali-Colombia-PublicStatement

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Sindicato Nacional de Trabajadores Metalúrgicos, Mecánicos, Metalmecánicos,

Siderúrgicos, Mineros, del Material Eléctrico y Electrónico



SINTRAMETAL SECCIÓNAL YUMBO

Personería Jurídica N° 0547 del 29 de Mayo de 1969

Expedida por el Ministerio de Trabajo y Seguridad Social

Calle 36 No. 14-52 Teléfono fax 448 11 77 - Cali







PUBLIC STATEMENT

We, workers of SIDELPA, union members of SINTRAMETAL sectional YUMBO,

denounce regionally, nationally and internationally, to the media, politicians, trade

unions and community organizations, that the Brazilian multinational Gerdau today,

June 23, 2009, announced the decision to close SIDERURGICA DEL PACIFICO

S.A. –SIDELPA- . This decision is illegal and unilateral.



Gerdau gave two reasons to close this plant located in Yumbo, Valle del Cauca,

Colombia. First, differences with the governmental agency in charge of the

environment in the area, Corporación Autónoma Regional del Valle del Cauca

C.V.C. Gerdau and CVC were fighting over the possibility that the plant was

contaminating. Gerdau is masking its decision with a false difference. CVC offered

last week to Gerdau to re-do the sampling, with full participation of the company

and the union, and, if they were negative CVC will allow the restarting of the

furnace and immediate full production. Gerdau is using the differences with CVC

as an excuse; the company will have resolved this problem with only allowing the

new sampling to be taken.



Second, Gerdau is saying that the international crisis is the second reason of the

closing of SÏDELPA. Gerdau itself provide the best response to this excuse. In a

press release dated May 7, 2009 Gerdau says: However, in March the company

observed signs of improvement in the market, with its sales volume in that month

20.7% higher than in December 2008. …. In this environment, Gerdau closed the

first quarter with revenue of R$ 7.7 billion and net income of R$ 35 million.…. In

Latin America (excluding Brazil), steel production at Gerdau units totaled 316,000

tons in the first three months of the year, up 41.1% on the previous quarter. Sales

volume was 487,000 tons, also expanding against the previous quarter, by 9.7%.



The lack of response to the CVC and the information provided by the company

show that the reasons presented are only excuses.

We believe it is important to share the real reason of this closure. After many years

of struggle, the workers of SIDELPA have a collective agreement that ensure a

superior standard of living when compared with other workers of Gerdau in other

plants in Colombia. On top, the union in SIDELPA is aggressively pursuing the

protection and improvement of the rights and benefits of its members. The real

reason of this closure is that Gerdau does not want other workers to learn from us.

They do not want that workers in other plants fight for better working conditions

and better standard of leaving using the only tool that workers have: their union.

Gerdau does not want unions in Colombia. Gerdau wants quiet workers and poor

salaries. That is the real reason of this closing; teach us and other workers a

lesson.



Without excuses, the reasons of Gerdau are simple; use this opportunity to destroy

jobs, reduce labor costs and wipe out trade unions.



The legal representative of this multinational Jorge Armando Gómez Galvao,

showing no mercy, informed us that the shareholders meeting hold today at 10 am

had decided to close immediately and indefinitely the plant, without fulfilling any its

legal obligations. This closure affects 280 permanent workers and 130 contractors.

It also affects our clients, for example Diaco Cali for whom we produce at least

9,000 tons per months. Clients, suppliers, the manufacturing sector, supermarkets

and stores will also be affected. More tan 2000 families’ en in the area will suffer

economically, psychologically and socially as result of this closure. Finally, this

closure will accelerate the destruction of the social net in Colombia. SIDELPA is

the only producer of specialty steel in Colombia and many small manufacturers

need our product, they cannot compete buying specialty steel at international

prices.



We, workers of SIDELPA will stay inside of the plant pacifically and indefinitely

defending our right to have a decent job.



We ask for your support writing to:



ANDRÉ GERDAU JOHANNPETER

Chief Executive Officer

Gerdau

Av. Farrapos, 1811

Porto Alegre – RS – Brazil

90220-005

andre.johannpeter@gerdau.com.br



INGENIERO EDUARDO ERMIDA MORETTI

President

DIETER NARBAL



MARCELA PISCIOTTI VANSTRAHLEN



GERDAU BRASIL - DIACO S.A.

Calle 99 No. 10 - 19 Piso 5 DIACO S.A. - GERDAU

diaco@diaco.com.co

imprensa@gerdau.com.br

carolina.moreno@diaco.com.co



INGENIERO JORGE ARMANDO GOMES GALVAO

General Manager



MARTHA ISABEL REYNOSO ZAMORA

Human Resources Director

Siderúrgica del Pacífico S.A. – SIDELPA -



Cra 37 No. 12 A - 63

Urbanizacion Acopi Yumbo (Valle) SIDELPA

sidelpa@colombianet.net



SINTRAMETAL SECCIONAL YUMBO

simetalyumbo@yahoo.com

Calle 36 No. 14 - 52

Atanasio Girardot de Cali

Colombia.



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