Brazilian steelmaker Gerdau denied Thursday claims that it was “constraining” workers at its Azkoitia plant in Spain to work on conditions similar to that of “slavery”.
Local unions accused Gerdau of “coercing and blackmailing” employees to work under precarious conditions, as the company negotiates an increase in the workers’ shift and a reduction in their wages as a way to handle the adverse market conditions the plant currently faces.
According to local unions ELA and LAB, Gerdau “despised” the revisions they proposed to the company’s offer. The unions argue that Gerdau has been trying to increase its profitability “at the expense of its workers” by trying to convert them into “slaves”.
In response to the union claims, a spokesperson for Gerdau told SteelOrbis that “increasing the workers’ shifts and reducing the [company’s] wage costs are measures, which are needed to guarantee the competitiveness of its [Azkoitia] plant.”
“Gerdau clarifies that there isn’t yet any denunciation about work conditions at Gerdau before the entities or [the local] competent labor authorities, but a manifestation of the opinion of the unions against the measures proposed by Gerdau in the renewal of the collective agreement.”