ArcelorMittal Ostrava a.s.
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Validity of the Collective Labor Agreement in ArcelorMittal Ostrava was
Ostrava, March 11, 2009 – Yesterday the representatives of ArcelorMittal Ostrava, the
largest steel making company, signed an amendment to the Collective Labor
Agreement. This amendment prolongs the validity of the current Collective Labor
Agreement until the end of 2009. “We are glad that we agreed on compromise solution
with the representatives of the Unions which provides more certainty and to all
employees more peace for their work,” said Ctirad Lolek, HR director of the company
when evaluating the negotiations preceding the signing of the amendment.
On behalf of the management of the company the amendment to the Collective Labor
Agreement was signed by Sanjay Samaddar, CEO and Chairman of the Board and by Josef
Buryan, COO and Vice-Chairman of the Board and on behalf of the Union it was signed by
Vítězslav Prak, the Chairman of the Union Counsel and by Stanislav Chmelík, Chairman of
the Association of the Basic Organizations. ………………………..(citation of SS)
Signing of the amendment to the Collective Labor Agreement and thus the prolongation of
the validity of the current agreement means that the present wage and salary conditions and
employee benefits will be preserved. Each employee of ArcelorMittal Ostrava is entitled to
get five weeks of paid leave, catering allowances, special compensation when retiring and at
the occasion of employment anniversary, pension insurance rider, recondition stays,
protective drinks, etc. “Last year we contributed 42 million crowns to our employees just for
catering. We spent also a significant amount for the pension insurance rider which in 2008
represented 7 000 crowns per employee on average,” said Lolek. According to Lolek, 532
employees went for the recondition stays for which the company contributed approximately 6
million crowns. The company gives also contributions for sports and cultural activities of the
employees and their children. Special compensations are paid to blood donors.
ArcelorMittal Ostrava a.s. is the largest steel company in the Czech Republic and a part of the
world’s largest steel group ArcelorMittal. The company produces more than 3 million tonnes of steel
annually and exports approximately 60 per cent of its output to more than 80 countries all over the
world. The company has 6900 employees; the total number of employees including the subsidiaries is
10 000. The average salary in 2007 was CZK 27,419 while in 2008 it incresed to CZL 29,816. The
major shareholders are MITTAL STEEL HOLDINGS A. G. (71.579 %), Harvton Investment Ltd.
(13.881 %) and the Ministry of Finance (10.969 %). In the fiscal year of 2007 (which ended on
February 28, 2008), the company generated a consolidated profit (after taxation) of CZK 9.2 billion.
With total revenues of CZK 57,7 billion, ArcelorMittal Ostrava is one of the biggest tax payers in the