Employment, EU – Baltic States, Investments, Latvia, Legislation, Markets and Companies, Metals Market

The letter has been sent to President Raimonds Vejonis, Saeima Chairwoman Inara Murniece (All For Latvia-For Fatherland And Freedom/LNNK), Prime Minister Laimdota Straujuma (Unity), the Economy Ministry, the Finance Ministry, Saeima groups and committees.

The letter says that the investor chosen for the Liepajas metalurgs plant was a "fatal mistake", and severely criticizes the new owner of the plant, as well as the work of Latvian security institutions and the government in evaluating prospective investors in Liepajas metalurgs.

The letter emphasizes that workers at the company are in a humiliating situation. "People who trusted promises by the company's new owners, quit the jobs they had found after the plant's insolvency and returned to work at the metallurgical plant, have been laid off again," says the letter, adding that they have earned very little and were laid off on the pretext of failing the period of probation. The remaining workers have had their wages cut, social contributions were last made in April, many have been told not to take vacations, and wages are now paid under the table.

However, the situation can be rectified still, says the letter. "In certain circumstances, with investments, and run by experienced investors – this company can operate with a profit. Regardless of protracted stagnation in the metallurgical sector, many similar plants in Poland, Spain, Germany and many other European countries keep their heads above water and continue to work."

The letter inquires why there are no permanent state inspectors on technical and financial matters at the plant. At the moment, the state owns 80% of the company's shares, the investors has paid only for 20% of the shares, emphasizes the letter.

The authors also wish to know why the number of workers and their protection was not discussed when the confidential agreement was being signed with the investor, and neither was the plant's ability to continue operations and development.

Straujuma is asked to explain her statement that the state would not suffer even if the plant halted operations and was shut down. "Please explain, Ms. Straujuma, to the metallurgical workers who have been laid off and those who continue to work at the plant, and to their families – what does the word "state" mean to you in this particular case?"

As reported, 960 people had a job at KVV Liepajas metalurgs at the beginning of May, but currently the company employs about 700 people.

KVV Liepajas metalurgs said it had to curb output at its steel casting plant, as the production costs are too high, and they undermine competitiveness of the company's products compared to those made by counterparts elsewhere in the European Union and the world.

KVV Liepajas metalurgs was also experiencing problems with paying Latvenergo for electricity supplies in May and June, but by now these problems have been solved.