The global steel industry is experiencing an unprecedented crisis that threatens tens of thousands of jobs worldwide, according to major trade unions representing steel workers. Union representatives at the recent OECD Steel Committee meeting in Paris have raised alarming concerns about the increasing risk of deindustrialization across both OECD and developing nations.
The current crisis stems from a perfect storm of challenges facing the industry. Global steel demand has plummeted to historic lows while production capacity has reached record highs, creating a severe imbalance in the market. This situation has been exacerbated by decades of poorly designed national policies that encouraged excess capacity and prioritized export-driven competition over domestic market stability and worker welfare.
The impact on workers has been particularly severe, with thousands already losing their jobs and many more positions at risk. In Europe alone, the steel sector faces a critical situation with widespread production cuts, plant closures, and mothballing of facilities. These actions are directly linked to record-low demand levels and unprecedented high import volumes, creating a devastating effect on local communities dependent on steel manufacturing.
Trade unions are calling for immediate government intervention through expansionary fiscal policies and increased public investment. They argue that current austerity measures, implemented under the guise of fiscal responsibility, are leading to severe cuts in public spending that disproportionately affect industrial workers. The unions emphasize the need for substantial investment in infrastructure projects to stimulate steel demand and protect employment.
The situation is particularly critical in the context of the industry's green transition. Union leaders stress that public support for modernization must come with strong social conditions, ensuring that investments in environmentally friendly production methods benefit workers through improved working conditions and fair wages, rather than solely increasing corporate profits.
Labor representatives are pushing for comprehensive policy reforms that would promote long-term growth and innovation while protecting workers' interests. They advocate for stronger labor market institutions and measures to ensure demand for high-quality, environmentally sustainable steel produced under fair working conditions. This includes implementing public procurement systems that prioritize steel products manufactured according to strong social and environmental standards.
The unions emphasize that multinational companies must balance their responsibilities to shareholders with their obligations to workers and communities. They argue against the current race to the bottom in production costs, which pits workers against each other globally, and instead call for establishing a fair playing field that maintains decent working conditions across all regions.
