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U. S. STEEL SERBIA, D.O.O.: NEW COLLECTIVE AGREEMENT SIGNED YESTERDAY

LABOR COST AGREED FOR THE NEXT THREE YEARS




Smederevo, November 21, 2006
After the negotiations lasting one month, the Employer signed a Collective Agreement with “Nezavisnost” Union and other representative Unions of U. S. Steel Serbia, d.o.o. for a period of three years, on November 20, 2006. This Collective Agreement represents a “unique” way of regulating industrial relations in Serbia, especially because the new labor cost has been agreed in a “package” for the next three years.

The earnings, based on the new labor cost for the employees of U. S. Steel Serbia, d.o.o. for 2007, will be paid out two months earlier, beginning from November earnings for 2006. The hourly rate amounting to Din. 74.- has been increased by 11%, whereby the rise of living costs is 7% and actual increase of labor cost is 4%.

The labor cost for 2008 will be increased for realized rise of living costs in 2007 and actual increase of earnings by 3%.

The labor cost for 2009 will be also increased for realized rise of living costs in 2008 and actual increase of earnings by 3%. The pay-out of earnings to employees for 2008 and 2009 has been agreed, based on the new labor cost, two months before the beginning of the calendar year for which this labor cost has been agreed.

After signing the new Collective Agreement, Mr. Douglas Matthews, General Director of
U. S. Steel Serbia, d.o.o., said that the relations between the Employer and Unions could be considered as historical, to a certain extent, with hard times and temptations at the beginning. According to his words, the new Collective Agreement is mostly beneficial for those who work a lot, i.e. employees working in the production plants and in shifts. The new Collective Agreement, reached in decent negotiations with the Unions, is a “strong signal” to the Management in Pittsburgh that there exists a “stable business atmosphere” in Smederevo and that it can continue to invest in the streamlining of the plants of U. S. Steel Serbia, d.o.o., and in this way the company Management will show that it cares about steady employment of workers in Smederevo factory, said Douglas Matthews at the end of his speech.

The President of “Nezavisnost” Union of USSS, Mileta Gujanicic, agreed that the new Collective Agreement has been negotiated in a decent and proper atmosphere, and that it is very important for the future of employees and the company. When the word is about the Collective Agreement itself, he thinks that one should not exaggerate in commending it, because one could have achieved even more if the three Unions had prepared themselves better for the negotiations. Finally, Mr. Gujanicic said that “Nezavisnost” Union would monitor consistent application of new Collective Agreement in the following period.

Bearing in mind that basic earnings of employees of U. S. Steel Serbia, d.o.o. will be increased for 2007, as from pay-out for January, by additional 6%, on the basis of tax relieves on salaries, and that bigger sums will be expected as of January next year, based on the right to profit sharing, under the Collective Agreement, agreed in the amount of 6% - one should expect a total increase of employee earnings by about 20%.

Some other, considerable benefits for employees of the Company, relative to those being provided for by Serbian Labor Law, have been agreed under the new Collective Agreement in U. S. Steel Serbia, d.o.o., which is unique, judging by many things, on the economic and union “scene” of Serbia. The shift allowance has been agreed in the following amounts: II shift – 10%, III shift – 40%, overtime work allowance in the amount of 40%, work on national holiday – 150%, work on Sundays – 15%, compensation for calling an employee at home to come to work, jubilee rewards, compensations for use of breathing apparatus, sickness allowance in the amount of 80%, vacation with the duration of up to 30 days for employees working in difficult working conditions and for employees having over 30 years of service, Solidarity Assistance Fund for assistance to employees in the amount of EUR 18.000 in Dinar equivalent at monthly level. It is important that possible proposals of Labor Contract termination will be reconsidered and decided on at the highest level. The allotment and distribution of school sets for the children of employees, baby parcels and New Year’s parcels has been also agreed on.

There will certainly be those who will be dissatisfied with the new Collective Agreement and the agreed labor cost, but this is within the domain of sociological and psychological comprehension of reality in which we work and live, as well as the transition period through which we go together.

 
     
 
 
 
 
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