Steel mills still need to shed up to 50% of employees to be competitive

The number of employees working in the steel sector will decline to below 25,000 from the present 31,000 before 2006, said the Economy Deputy Minister Marek Kossowski in the Senate on Thursday. "The steel industry is now working at 70% capacity and should in fact employ less than 16,000," explained Kossowski to Senators working on restructuring the sector. According to the Steel Sector Restructuring Bill the Treasury Ministry would supervise those mills that launch their restructuring program taking the burden off the Economy Ministry's shoulders. Under the program, workers in mills about to go bust will be covered by a guaranteed severance package paid from a special fund and not, as has been the case so far, from their employers. (Puls Biznesu, p. 7) J.K.