Lurberas/News

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Steel workers threaten strike if higher wages don't come soon

PERSTENA - Lurberan Steel Manufacturers United (LSMU) has said it plans to hold a strike at three Muthold Steel plants next Monday if the company does not agree to a wage increase by then. The labor union, which has been representing steel workers at Muthold and other companies since 1966, has been demanding a higher wage since the labor contract it signed with Muthold expired last month. LSMU wants its workers to receive K19.35 per hour for the next contract term, a K4.12 increase from the previous wage of K15.22. Muthold has rejected the demand, citing decreased productivity and increased overhead costs. The union says that K15.22 per hour is no longer viable for most workers, many of whom are facing the possibility of taking state benefits. "The cost of living has become too high to justify a K15 wage. A four kiru increase is a generous demand" said a LSMU spokesman. Under current law, if the workers do strike, Muthold cannot fire them unless it can prove to a judge that such a strike is unwarranted. Experts say it is unlikely Muthold would take them to court. Muthold has not commented on the situation and declined our request for a statement.

Our economic analyst Keren Loson tells us that the price of steel could increase roughly 6% if the union goes through with the strike. That number would certainly go up the longer the strike continues. Muthold is only one of four steel manufacturers in Lurberas and one of them is also represented by LSMU.