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Vertically integrated group of steel and mining companies Metinvest has made a decision to reduce labor hours by 20% with a proportional decrease in salaries for the administrative staff due to uncertainty on the global steel markets, which prompted the company to curtail its production, according to Metinvest press service.
"Due to forced reduction in production caused by uncertainty on the global steel markets, Metinvest has decided to reduce the daily working time by 20% with a proportional decrease in the administrative staff's salaries," the press service said in a statement.
It said this measure, which was taken to reduce the company's costs, would be in effect for two months.
The press service further reported that production at two major companies in the Ukrainian town of Mariupol – the Illich Steel and Iron Works and Azovstal – had almost halved recently due to a number of objective reasons, namely market conditions, logistics, etc.
The report notes that the current anti-crisis plan suggests administrative staff members have a shorter working day amid partial workload. At the same time, employees engaged in manufacturing will continue to operate normally.
"The anti-crisis program is focused on reducing costs. For this end, we are ramping up in maximum our internal resources and avoid costs that are not related to production. These measures will help cut costs and channel funds to be saved into maintenance of production facilities and workforce," the company summed up.
UNIAN's memo.Metinvest is the largest in Ukraine and one of the largest CIS producers of iron ore raw materials and steel. Its major shareholders are the financial-industrial groups of two Ukrainian oligarchs – Rinat Akhmetov's SCM with 71.24% of Metinvest's shares and Vadym Novinsky's Smart-Holding with 23.76%.