Having avoided bankruptcy in November 2021 after submitting, Liberty Steel is facing an important weekend for its future on the Meuse. On Friday 18 February, the company court will check whether the steelmaker has respected its plan and its commitments. If it turns out that there have been shortcomings, the court has the power to take new measures, including liquidation.
This is a scenario feared by the 690 workers at the two Liège sites, but also by the 220 workers at the Dudelange plant, which needs supplies from Liège to function.
“Liberty Steel has not necessarily respected its commitments to the letter. But it is up to the court to judge. It remains to be seen whether the court will impose additional constraints, which would be the best case scenario, or whether it will decide on liquidation,” said Robert Fornieri, deputy secretary general of the LCGB labour union, for whom such a decision is synonymous with the closure of the Dudelange site. “The Liberty Steel site in Dudelange will not be affected by the Belgian court’s decision. However, from an industrial and logistical point of view, it is a different story. If this is the case, we will have to react very quickly,” said the trade unionist.
The situation is becoming worrying. There are workers with a very specific profile and technical know-how who are starting to leave the company.
A job retention plan at an impasse
Negotiations on a job retention plan between the management of Liberty Steel Dudelange and the LCGB, which began in December 2021, are currently at a standstill. “Last week, we had another meeting within the framework of the job retention plan negotiations, but for the time being, we are not able to start it,” said Fornieri. He blames the steelmaker for the lack of guarantees in terms of investment and development for the site. "There is no real commitment or guarantees from the Liberty Steel group. For the moment, we are waiting to find an agreement, but we are not making any progress,” assures Fornieri.
The uncertainty surrounding the future of Liberty Steel since its financial setbacks caused by the bankruptcy of Greensill, its main creditor, is beginning to weigh on the morale of the workers. In Dudelange, many workers are still on short-time working with 80% of their pay. Tired of the situation, some are starting to look elsewhere for more stable companies.
"The situation is becoming worrying. There are workers with a very specific profile and technical know-how who are starting to leave the company. It is understandable; at a certain age, it is sometimes a good opportunity. At trade union level, we believe in the future of the Dudelange site, regardless of the employer, the site is viable and that is what we tell the staff. The loss of key elements is worrying, because when the machine has to be restarted, there will be a risk of a lack of skills,” said Fornieri, who also criticises management for not communicating enough with the workers.
Towards liquidation in the UK
Across the channel, Liberty Steel is also experiencing increasing difficulties. Due to unpaid taxes, the British courts are considering the liquidation of four Liberty Steel production sites employing 3,000 workers. If this happens, Sanjeev Gupta’s steel empire will be seriously affected.
Liberty Steel and GFG Alliance have stressed that the current difficulties are linked to soaring energy prices.
The British tax authorities have also launched an audit of Liberty Commodities, another pillar of the GFG Alliance group. Other investigations into other companies in the group are also underway.
This story was first published in French on . It has been translated and edited for Delano.