Labor unions and employers at the bargain table for Erdemir and its most important subsidiary İskenderun Demir ve Çelik, or İsdemir, agreed on the amendment of some articles of the collective agreement for a period of 16 months, the firm told the Istanbul Stock Exchange, or IMKB, in a filing Tuesday. According to this deal, wages and other rights attached to them will be cut by 35 percent, however, monetary and non-monetary benefits will not be affected by the cut.
Impacts of global crisis
In the filing, Erdemir pointed to many measures taken at the firm as well as at İsdemir to minimize the impacts "of the losses stemming from global economic crisis, which is gradually expanding, deepening, making it impossible to guess when it will stop.
"In addition to the various measures that have been taken, labor unions and employers that are the parties to the bargains have agreed on the amendment of some articles of the collective agreement for 16 months, also considering the consultations with our workers within the framework of the current conditions," the firm said.
The development has come in order to secure the robust operation of the enterprises, and their fulfillment of missions for the national economy and is based on the long-standing trust, respect and altruism between the parties, according to the statement. The agreement is an alternative to dismissing many workers and is being implemented for the first time on the country in such a scale.
"All conditions of the deal will be implemented for all staff, including those who are not covered by the collective agreement as well as top level executives,"the statement said.