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“NEZAVISNOST” UNION OF USS: HIRING “THIRD PERSONS” AND “ILLEGAL WORK”
CAUTION – NEVER ENOUGH

Smederevo, September 6, 2007.
Wishing to secure a good position in the world steel market, the USS bought the Canadian Steel Works “Stelco” and thereby increased its own iron supplies. At the time when raw material prices are increasing, and a 25% increase is expected next year, by some forecasts, one must admit that USS follows a wise business policy. The USS paid 1,1 billion dollars for the purchase of Canadian “Stelco”. For each purchased stock it paid 36,62 dollars, being by 11,4 dollars more relative to the last value of purchased stock on the stock exchange in Toronto. USS Company will, in this way, increase its capacities to 33 million tons of crude steel. This transaction is important for strengthening USS Company and its position in the world market. For the reason of all aforesaid, the “Nezavisnost” Union of U.S. Steel Serbia, d.o.o. evaluates positively the visionary business policy of this company. We believe that employees of U.S. Steel Serbia d.o.o. will be engaged much more on their jobs and have higher pays and get profit.

YOUNG PEOPLE GOT JOBS

These days U.S. Steel Serbia, d.o.o. is performing works on the streamlining of BF 2, meaning thorough reconstruction of this furnace. It has been planned to eliminate all steel jacket defects from the base to the furnace top. According to announcements from U.S. Steel Serbia, d.o.o. the overhaul will last two and a half months. About 700 contractors will be engaged on the stated jobs every day. The “Nezavisnost” Union is especially glad that young people will be the first to get a job. The main contractor for carrying out the overhaul is “Termostav – mraz” from Slovakia.

The president of “Nezavisnost” Union of U.S. Steel Serbia, d.o.o., Mileta Gujanicic, because of the concern about the safety of large number of workers, namely, “third persons” in the company, and especially young people who encounter, for the first time, difficult, complicated and sometimes risky jobs in the iron and steel industry, sent a letter on this occasion to Mr. Douglas Matthews, General Director of U.S. Steel Serbia, d.o.o. on August 29, 2007. In the letter of “Nezavisnost” Union of USS, he requested from the company to take care of safety, training of workers – contractors, that all of them have to complete the training, as well as all USS employees, so that there would no be injuries and undesired consequences in the company.

WHICH COMPANIES - "THIRD PERSONS" WORK IN U.S. STEEL AND DO THEY VIOLATE THE LAW ?

The “Nezavisnot” Union of U.S. Steel Serbia, d.o.o. requests certain data about the companies – “Third persons”, currently engaged, company owners, because there is evidence that some of them are on high political positions in their parties, in local government, and even members of Serbian Parliament. If the “Nezavisnost” Union of U.S. Steel Serbia, d.o.o. establishes that this evidence is true, it shall be considered “Conflict of interests” and violation of the “Code of ethical business conduct”.

“Illegal” employment of workers or their “temporary hiring”, “uncertain job” adversely affects the earnings and working conditions of those workers and especially affects their safety on the job. The “Nezavinost” Union is concerned about this frequent occurrence in U.S. Steel Serbia, d.o.o.. Such a way of hiring new workers in U.S. Steel Serbia, d.o.o. is increasing, which gives rise to concern. The “Nezavisnost” Union understands that these workers need a job and that they have to accept an offered job at “any cost”, because they are not in a position to choose the offered job. Those young people are not aware of the risks they can encounter, because their primary motive is a job and pay. Just for those reasons, the “Nezavisnost” Union is ready to protect workers without any rights and it pleads for exercising the rights that all the other employees of U.S. Steel Serbia have.

INTERNATIONAL TRADE UNIONS AND ACTION AGAINST FALSE LABOR RELATIONS - "ILLEGAL WORK"

With respect to such labor relations, the International Labor Organization (ILO) adopted the Recommendation ‘’R 198’’ in June 2006, recommending governments to phrase and adopt national laws, which shall distinguish between employees and the so-called self-employed workers and fight against false, unclear labor relations or employment. A meeting of the International Trade Union Organization ‘’MFM’’, for South-East Europe, will be held in Sarajevo at the middle of September 2007, at which those issues will be a major item on the agenda.

The ‘’Nezavisnost’’ Union of U.S. Steel Serbia, d.o.o. fights against “grey economy” and “illegal work” intensively, supported by a large number of small enterprises in which there are no trade unions. Such employers not only violate legal obligations, non-payment of pension and social insurance, non-procurement of adequate protective equipment for their employees, but by tax evasion, non-payment of contributions and similarly, they make great financial difficulties to local government and the State. The “Nezavisnost” Union of U.S. Steel Serbia, d.o.o. shall, due to all the mentioned problems and possible failures, demand from the competent Republic inspection authorities to perform supervision in U.S. Steel Serbia and take adequate measures in compliance with the law.

A CLEAR MESSAGE TO U.S. STEEL EMPLOYER

- “Regardless of the signed Collective Agreement dated November 20, 2006., the mission of “Nezavisnost” Union of U.S. Steel Serbia, d.o.o. has not been completed, and whenever some of employee rights have been infringed, “Nezavisnost” is always there to safeguard employee rights and monitor a consistent performance of the Collective Agreement in U.S. Steel Serbia, d.o.o. Caution – never enough” says Mileta Gujanicic, president of “Nezavisnost” Union of U.S. Steel Serbia, d.o.o.

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