ArcelorMittal Temirtau intends to cut salaries by 25% from August 1st

ArcelorMittal Temirtau has announces its plans to cut salaries to all employees by 25% from August 1st.

"Due to the unprecedented market conditions, in which ArcelorMittal Temirtau has to work today, the company has informed the Government of Kazakhstan, the trade unions and their employees about its intention to reduce wages to all employees by approximately 25% from August 1st," – the company’s message says.

The company immediately begins negotiations with the trade unions leaders.

"The management of the company personally met with members of the Kazakh Government to explain the reasons for pay cut" – the message says.

As general director of ArcelorMittal Temirtau, Vijay Mahadevan stated, the company's management held meetings with employees, during which the need for such an extreme measure was explained to them.

"First of all, the reduction of costs is an extremely necessary measure if the company wants to have a stable future. Secondly, we believe that this sacrifice is preferable than the cut of a large number of job," – the message cites words of the company’s CEO.

According to him, several external factors affect the activity in the production of metals and coal and ore mining, resulting in significant losses, incurred by the company.