Following negotiations with the Ministry of National Economy and trade union representatives, the management of ISD Dunaferr Ltd announced at a press conference in Dunaújváros, a significant decrease in the number of employees to be laid off, from 1500 to 400 people.

Minister of State for Employment Sándor Czomba stated that the Government accepts the company’s aim to ensure the long-term and stable operation of Dunaferr instead of selling the enterprise and accordingly the Government is exerting efforts to provide assistance. Responding to a question he stressed that it is not possible to aid the steel sector by direct subsidies, but there are certain “EU-conform” schemes for example in Slovakia at the steel company of Kosice.

The Minister of State emphasised that the Government makes every effort possible to guarantee that this downsizing round is the last one and intends to provide opportunities to those affected by it. He stated that together with the employer the Government has established a working group to evaluate cooperation options in the field of energy, environmental protection and others. They are assessing constructive solutions which would keep the number of employees at the current level and ensure a long-term and stable operation, he said. The state and labour organizations are also assisting employees by offering training courses, enterprise incentives and wage subsidies.

CEO Evgeny Tankhilevich stated that for Dunaferr the primary issue is not the ownership structure but operating in a more productive and cost-efficient way. He added that taking into consideration the entire process and acting in accordance with various resolutions the first group of employees will be laid off in January next year the earliest.

(Ministry for National Economy)