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United in Diversity
Sunday, Jun 15, 2025

Unions Demand Clarity on ArcelorMittal's €100 Million Cost-Cutting Plan in Ghent

Concerns raised over job security and lack of transparency in consultation process amid planned layoffs.
European trade unions have expressed strong objections to ArcelorMittal’s €100 million per year "Zenith" cost-cutting initiative, particularly in relation to its operations in Ghent, Belgium.

Union representatives, including those from the ACV, argue that the multinational steel company has not been sufficiently transparent regarding its plans, which could put approximately 190 jobs at risk in Belgium.

The unions state that crucial information about the prospective impact on jobs, workloads, and overall working conditions has not been adequately disclosed to employee representatives.

The unions have voiced concerns that the consultation process implemented by ArcelorMittal has not been managed effectively.

Reports indicate that information was either not shared in a timely manner with several works councils or entirely absent, limiting the possibility for meaningful feedback from employee representatives.

This lack of communication has reportedly fostered a climate of confusion and distrust among the workforce.

Additionally, there are apprehensions regarding inconsistent communication across ArcelorMittal’s European sites.

While some locations received information related to the Zenith plan, others were left uninformed, which has heightened anxiety among workers about potential job losses and operational changes.

The unions have called on ArcelorMittal to pause the implementation of the cost-cutting measures until comprehensive consultations with employees can take place.

They emphasize the importance of adhering to European labor laws and advocating for responsible corporate behavior.

The unions are particularly concerned that the Zenith project may lead to the relocation of significant jobs to countries where labor costs are lower.

Allegations suggest that some IT roles currently based in Ghent could potentially be transferred to Poland and India, sparking further worries about job security within Western Europe.

Peter Verniers, a representative from the ACV trade union, expressed dissatisfaction with ArcelorMittal's approach to the Zenith initiative, asserting that the company lacks a clear strategy and is moving forward without adequate planning.

He advocates for the adoption of new technologies, such as automation and robotics, as alternatives to job losses.

ArcelorMittal has claimed that the Zenith project will result in annual savings of €100 million; however, unions have demanded substantiation for this figure, questioning the sufficiency of the project's €30 million budget as well.

Verniers and other trade union leaders contend that these financial projections illustrate a lack of thorough planning and consultation concerning the Zenith initiative.
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