AFP global steel conglomerate ArcelorMittal has confirmed that it will cut 630 of the 6,000 jobs at its Czech plant in the western city of Ostrava to boost competitiveness.

ArcelorMittal received 700 requests under the voluntary redundancy program offering employees the equivalent of 11 to 24 months' salary depending on seniority as part of a compensation package.

Ms Vera Breiova spokeswoman of ArcelorMittal Ostrava told AFP that "The number of 630 is not definitive, the process is still underway. The plan covers both blue and white collar workers of all ages."

The Czech branch of the company already shed 1,200 jobs in 2009. The first voluntary lay offs are to take effect on January 31st 2012. Tougher economic times in Europe appear to have dictated the company's decision.

Ms Breiova told AFP that it was taken as part of efforts to improve worker productivity. She added that "Considering the uncertain situation currently dominating the European steel market, the company must be competitive."

Meanwhile, Mr Vitezslav Prak, a local trade union official at the plant, has signaled unions will be seeking wage hikes for remaining employees.

(Sourced from AFP)