Mark Franchetti in Shakhtinsk, Kazakhstan, and Robert Winnett
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WORKERS employed by Lakshmi Mittal, Britain’s richest man, are accusing the billionaire of cashing in on “slave labour” conditions after scores have died in accidents in his mines.
Coalminers working in Mittal’s Kazakh mines claim his firm is endangering their lives by using dangerous, outdated equipment and by cutting corners. More than 90 have died in the mines since 2004.
Miners claim that conditions are worse than in Soviet times and say they would rather work in Siberian mines.
This weekend Arcelor Mittal, his company, said health and safety was a “top priority” and that it intended to invest £63m improving safety at the mines.
The criticisms were made by miners and widows of some of those who have died at Mittal’s mines in Kazakhstan, which he has owned since 1996.
Last September a gas explosion killed 41 in the Lenina mine. Two years earlier an explosion in the neighbouring Shakhtinskaya mine claimed the lives of 13.
“We are being treated by Mittal’s people as little more than slave labour,” said Sergei, a Lenina miner. “Conditions are far worse than they were in Soviet times. The danger is so high that when I go to work I often feel I’m on a suicide mission.
“I lost eight close colleagues in the [2006] explosion. Since then nothing has been done to improve safety. We are all just waiting for the next accident to happen. It’s so tough here that many are leaving to work in mines in Siberia.” Other Mittal miners said that some of the machinery and equipment dated back to the 1970s. “Absolutely nothing has changed since the explosion,” said Yuri, another Lenina miner.
Alarm systems used to detect gas levels are said to be faulty and outdated. Ventilation pipes are made of a rubber fabric that often tears and which miners stitch up by hand with metal wire. Unlike in the West, Mittal’s Kazakh miners still use shovels for some work and are made to drag 260lb steel beams to shore up the mineshafts.
Mittal, whose family’s wealth is valued at £19 billion in The Sunday Times Rich List, runs the world’s biggest steel producer. He has a £70m mansion in central London and this year donated £2m to Labour.
Arcelor Mittal said the miners’ concerns were being addressed. It said it would spend £13.2m this year on mod-ernisation. New personal gas detectors and masks are on order. The firm says its investment is already paying off: there have been no fatalities this year and injuries have dropped by 30%.
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As far as his illegal immigration is concerned, I feel Leicester has bulk of them brought from Pakisthan for diff purpose and some from Gujarat,India. I feel it's not with immigrants but British. Coming to Mittal, richest man on earth, travelling world without have visa and passport- this is false.
Nicolas, Cergy, France
Slave labour is in LEICESTER alot now due to illegal immigrants living here someone need to look into all the factories immediately everybody whos white now is 2nd best
Dave, LEICESTER, uk
"China's vast slave state capitalist army" - Jonathan da Silva, Feltham, England
Haha. Sometimes I cannot help but laugh at the foolishness of some people. So, the UK has better pay, employment rights, maternity leave, redundancy packages, and overall working terms backed by strong Unions - and look at what has happened! Manufacturing in the UK is dead!
China may have its issues (lots of them, admittedly), but at least theyve got jobs! The more the unions continue to strike for 50p more an hour, the more likely the working class are going to be out of jobs.
Wake up and smell the coffee.
Pete, Cov,
May be Mittal is applying double standards here. It needs to look good in Western Europe to retain support, but why does it need to bother with workers on forimer soviet-occupied territories which are as far away from the UK as inconsequential to any Western European?
Joe, LA, USA
Now you know why he is the richest man in the UK. There's nothing like cutting a few corners her and there.
Ed Penney, Morecambe, UK
It's a tragedy. Businessmen like Lakshmi Mittal show very little respect for their fellow beings. In India, where he hails from life comes cheap. Thousands die daily in accidents and yet life moves on, without the authorities taking corrective steps.
But Lakhsmi Mittal should remember that he's doing business in developed countries that are governed by strict norms on safety and livng standards. Perhaps, I believe by taking over Arcelor he'll find corporate governance and corporate social responsibility rubbing on him more and he better change for the good.
Tanai Punnen, Mumbai, India
Mittal's actions are not only despicable, but also selfish and unethical. It comes as a shock to learn that the richest man in the United Kingdom is terribly stingy when it comes to own workers' health and safety welfare.
Phoon, Kuala Lumpur, Malaysia
Mittal has built a fortune through shrewd business decisions. The trouble is he has done so through exploiting workers and indeed shareholders too. It is a pity because it adds weight to those who believe you can only get rich through exploitation and dodgy dealing. He would have been very rich anyway. A pity that he chose to do so using such methods. He has been helped along the way by Goldman Sachs and Morgan Stanley among others who have allowed their own professionalism to be influenced by his fees that are significantly more generous than other corporate payers.
Aditya, lille,
The steel plants and mines taken over by Mittal were sick units having vintage equipment and these assets are being modernized but to accuse Mittal of treating his employees as slave is most inappropriate uncharitable and shows racist streaks in the allegations. Mittal must attend to the shortcomings and must ensure safety of his employees.
M.M.GURBAXANI, Bangalore., India
People in Costa Rica should not label people elsewhere without cause. A despot is one who wilfully ignores human rights. I am sure Mr. Mittal is not a premeditated villain, and is smart enough to realise the potential harm to his organisation, image and share price that such news and such conditions can bring. Lets give him the benefit of doubt and hope that he is alive to the needs and welfare of his employees.
Shishir Baxi, Dubai, UAE
He is not paying there taxes also. Poor Kazakh people are trying to stay alive digging depper for 300 pounds a month without any package.
Borat, Temirtau, Kazakhstan
Hi Sam (Oxnard, CA): "He" just happen to find $ 63m under his sofa? Surely you mean that the Asst to the Junior Maid found it?
Deepak Singh, Wayland, USA
I read all the comments here and all I find is ignorance. The blame is not on Mittal, or the British Govt. [how the latter was brought into the picture by some commentators here stupifies me]. Mittal doesn´t run Arcelor Mittal single-handedly, he has too many other business concerns. The blame is on the Kazakh Govt. -- they are the ones who should be regulating the safety of the mines and its miners. It is the Kazakh Govt. that is the devil here. Had it been more concerned about the welfare of the Kazakh workers, none of this would have happened.
Kong Kek Kuat, Kuala Lumpur, Malaysia.
"about the same everywhere in the ex soviet union but of course makes better copy to accuse Mittal. i should think any comment from Beijing - after the news of this week - should better be muted.
mark, alicante, spain"
No, Mark, it's not about the same in the exUSSR. Many of these poor miners are immigrating from Kazakhstan to Russia, because they can almost double their income and improve working conditions. Mittal doesn't want to invest in his Kazakh assets, which is why he still uses old Soviet equipment and puts his workers at risk.
Erzhan, Almaty, Kazakhstan
Dear Mr. Khan. Yes, we are warned and we will always have in mind the difficult situation in which Mr. Mittal lives. Thanks for bringing that aspect to our attention.
Fabio C, London,
Lakshmi Mittal should be personally held responsible for slave labor and death of the miner and accidents in his mines.
Munna, London, UK.
There is lot of untruth said and written, I am sure some one wants to make a big name by writing against a successful man, and if properly investigated the truth will come out.
Hope you do not waste time and front page by writing, something which is not truth.
and it is not crime to be successful.
And by giving donation to political parties it doesn't mean Tony Blair has favoured him in any way.
kishen prasad, bath,
It is much easier to make money when there is no need for integrity. The pursuit today for too many people is more money, and litle else matters, certainly not other people.
greg panke, Orangeville, Canada
If this were a blue chip company like the oil majors, large pharmaceutical companies there would have been a major outcry with the amount of deaths reported here . The same duplicity is evident on the safety that many of the oil traders that operate out of London get away with. These people are wandering the streets of London, living in multi-million pound homes in the richest suburbs in London, but are answerable to nobody if they freight their cargoes on substandard ships and cause environmental catastrophes. I blame the media for only targetting the big companies and failing to highlight these people and call them to account. $63m on safety is a pathetically low amount given the size of these operations.
NH, London,
Mittal & Company is new labor-relations Indian style and fits into Blair's scheme of doing business. Bereft of any ideology Blair's rapacious New Labor represents what Edward Heath referred to as the "Unacceptable Face of Capitalism".
Khurshid Zaman, St. Petersburg, Florida
I am surprised at how "Adverse Working Conditions" in this article are described as "Slave Labour". No denying the fact that given the report, conditions are not up to the mark for a company that claims to be of high standards. But, I beleive the term "Slave Labour" is being used here to sensationalise the news item, which is not appropriate for the newspaper that claims to be of the highest standards.
Tony O'Brien, London,
£2 million pounds to Labour? Can you hear Nye Bevin spinning in his grave?
Alan Henderson, Whitley Bay, Tyne & Wear
We need to accept the ways of others. Are we bigots?
Old Atlantic, Atlantic City, NJ
I'm sure Tony Blair will continue supporting this despotic millionaire friend. Neither man seems too concerned about the deaths they cause.
Caroline Cabrera, San Jose, Costa Rica
Lets not be naive it is capitalism. This is how it works. Maybe as with BP with its contempt for workers lives in Texas and the environment in Alaska show this country has probably the deepest contempt for workers lives but that is how it works.
With leveraged buyouts and China's vast slave state capitalist army this is how things work now.
Jonathan da Silva, Feltham, England
How much money do we need to be happy in life? The miners and their families certainly don't need much to make a big difference to their lives. If Mittal took the time to understand how they are forced to live, then , surely, he would want to revolutionize his mines. I hope he does.
kim domnick, Torquay, UK
this why the third world will always despise the first- its double standards. aren't human lives the same all over the world.
Muhammad Omar, Durban, South Africa
Furthermore, it is noteworthy that Mittal is playing the game cleverly. As with any business strategy and contingency plan, his £2m donation to the Labour party has entitled him to some form of support from the government, as well as, immunity from the law.
Phoon, Kuala Lumpur, Malaysia
We seem to idolise the wealthy.
If we were to scratch under the surface of almost all of them ,it would reveal an ugly darker side.They have achieved their wealth by stepping on the heads of many people.They have either expoited workers or used unscrupulous business practices to secure their fortunes.
Sometimes they may throw a few charitable crumbs presumably to help them sleep at night.
It would be interesting to study the RICH LIST and see how many of them play fairly.
James Currie, London, U.K.
So what is the difference between BP being hauled over the coals for the incident in Texas that killed 15 people and this. BP's senior-most executives faced ptential jail terms and indeed several had to leave the firm. Then CEO Lord John Browne was himself under immense pressure to resign. Where does Lakshmi's accountabilty lie with these deaths, many more than BP's?
john, London,
Isnt is time city took notice of businesses corporate and social responsibility issues more seriously rather than other criteria which keeps pushing share prices ande be instrumental in this unfare wealth creation!
T Balkan, London, UK
When some people get that much money and power they become so remote from the workers who actually generate the wealth that they see life as cheap and easily replaceable. If you boycott the products the workers will starve. Very sad.
Karen, Adelaide, South Australia
No wonder the resources like coal is becoming expensive.The price includes the sweat,blood or even Iifes of the workers
Jensens, Hong Kong,
about the same everywhere in the ex soviet union but of course makes better copy to accuse Mittal. i should think any comment from Beijing - after the news of this week - should better be muted.
mark, alicante, spain
£63 million? Did he just happen to find some spare change under his sofa cushions? That is a ludicrously small amount to spend on equipment. Now we know why he is the world's largest steel producer.
Sam, Oxnard, CA, USA
In the frenzied buying spree that Mittal went through to extend his empire, he can hardly be blamed for buying out some dodgy operators. However, it remains to be seen how much he does in improving the working conditions and giving the workers a fair share for their work. After all, what can he possibly buy for another £10 billion that he cannot buy already ? Unless its an ego trip for him. Be warned, this wealth is mostly on paper in terms of shares using leveraged buyouts. Any adverse change in market conditions, could his real worth drop like a stone.
Abid Khan, Milton Keynes,
To the rich------Please concern more about the miners, not just the profits.
cathy, beijing,
Rather long past time that you took a really, really good look at this guy. Why not before? The power of money? Personal relationships? 'Post-empire/colonies western liberal loonies' self-imposed guilt syndrome?'
Alex Dryden, Ottawa, Canada