CAP negotiates with Huachipato plant workers
Over a hundred employees benefited from the measure. The company agreed with one of its unions a new collective agreement with more suited conditions to the new productive reality
As part of the restructuring process of the steel production Huachipato, CAP offered to subsidiary workers a voluntary retirement plan.
Sources of two of the three unions of the company reported that at press time more than 100 plant officials (professionals, technicians and other workers) availed of this call which lasted three days and ended yesterday.
Juan Carlos Mora, No.1 union treasurer, that encompasses 80% of the 1,617 plant workers steelmaker, explained that this layoff program was proposed by union representatives as a way to anticipate layoffs that will occur, as a result of CAP’s decision to cripple one of its business lines (flat products) to focus on long-type inputs, for mining industry (grinding bars and construction iron), now more profitable for the company.
The official added that the new Huachipato’s General Manager, Ernesto Escobar, informed the representatives of the three unions of the company that one of the consequences of restructuring will be the reduction of the workforce.
Although it emerged that layoffs could be 500, the company explained that they have not yet defined the final figure and added that this will depend on an assessment that is still developing and will depend on factors such the adherence to the voluntary retirement plan and the ability to internalize some services that today are performed by Contractors.
Those who agreed to give up the company will receive a bonus of $ 2 million in addition to other benefits in the calculation of seniority for compensation.
Other union leaders ahead that layoffs could occur during September, because according to the information gave by Escobar, at that time there will be the stoppage of flat products line, because there would be completed delivery commitments for these products.
Jorge Olavarría, from Union 2, who has more than 260 partners, said that the company reported that the stoppage of this line will be temporary, because the expectation is that in the medium term market conditions for flat products could improve.
Collective Negotiation
Yesterday Huachipato steel reported they closed early negotiation with the union No. 2, process in which benefits are adjusted to the new realities of the company and was agreed term dispute bonus for $ 1.6 million.
Problems within the larger union will prevent the company replicate this negotiation, because the division of the Board keeps the company without a counterpart with which to negotiate.
Source: Diario Financiero
