Metallurgical Industry, Hit From All Sides

• As works on the Comarnic - Brasov highway section have been postponed, ironworkers face further problems

Already hit hard by the economic crisis, the metallurgical industry has received another blow, but this time from the State. The news came after a significant decline of the order intake, corroborated with thousands of lost jobs.

Works on the 58 kilometre highway section between Comarnic and Brasov, a major infrastructure project requiring huge volumes of construction materials and reinforcing iron (a metallurgical product) have been postponed again, according to Bogdan Hossu, President of the union confederation CNS Cartel ALFA, which represents the metallurgical unions, too.

"The decision to award the building contract for this major infrastructure project, which could revive the domestic market for construction materials and reinforcing iron, has been postponed for March, Hossu explained. Hossu described the postponement as "stupid" because "it could jeopardize even the organization of the Winter Edition of the European Youth Olympic Festival in 2013" if the works are not completed on time.

Contacted by BURSA, representatives of the National Highway and Roads Company (CNADRN) said that a new deadline had not yet been set for the Comarnic - Brasov highway section. The postponement has shattered the ironworkers" hopes for the revival of the industry through massive orders for reinforcing iron. The crisis management plan prepared by the Boc Government does not include any direct solutions to the problems facing the metallurgical industry. Indirect support is, however, included in the form of orders from the construction business and the public infrastructure projects.

"The solutions for our industry were only discussed at a high level of detail. The main point was to receive steel orders for infrastructure projects, but no details are available," said Nicolae Coman, Secretary General of the metallurgical industry union federation METAROM. He stressed he was very disappointed with the postponement of the construction works on the highway section between Comarnic and Brasov.

The news is indeed very bad for the metallurgical industry, a core component of the Romanian economy, as the situation is already quite alarming: approximately 10% of the workforce (3,200 employees) could lose their job in the near future as a result of major economic problems facing their employers. The crisis has taken a dire toll on the volume of orders, while the unions are threatening to stage heated protests. The exceptional circumstances have prompted the union leaders to demand immediate State intervention.

"We will have a meeting with Ministers Pogea and Videanu on Wednesday to discuss the status of the industry," Coman stated. Among others, the unions are demanding protectionist measures and State orders. Contacted by BURSA, METAROM President Mircea Scantei explained that the talks would focus on State orders for steel and other similar materials, as well as the possibility to increase State reserves by the volume on the ironworks" stock for interventionist prices.

"We will demand that State funds allocated for public infrastructure projects be kept in Romania, because every E.U. country protects their industries at a time of crisis," Scantei added. Although the unionists hinted that they were fairly optimistic about the outcome of the negotiations with the Government, Scantei warned that, should the Government turn a negative answer or do nothing about their problems, the situation would worsen. "We have estimated a 10% job cut, but this can be much worse if we do not find the proper solutions fast," Stantei said. The METAROM leader warned that the unions were ready to stage protests if the Government was going to turn a deaf ear to their problems.