By Christin Nance Lazerus, Post-Tribune staff writer
One hundred employees at U.S. Steel's
Gary Works were laid off Thursday due to weak consumer demand for steel, officials said.
The company announced 677 layoffs, effective immediately, across the U.S. and Canada. Affected U.S. plants are in the Pittsburgh, Pa. area, Ecorse and River Rouge, Mich., Granite City, Ill., and Fairfield, Ala. Affected Canadian plants are in Hamilton and Erie in southern Ontario. U.S. Steel Corp. spokesman John Armstrong confirmed that 100 people were laid off in Gary.
Jerry Littles, president of United Steelworkers Local 1014, said 58 employees from the "hot" iron and steelmaking side at Gary Works are impacted. Littles said he didn't have exact numbers for other areas of the plant. All of the affected workers have fewer than three years experience.
"There are 58 families affected by it right now. It affects the whole community, and their buying power as well," Littles said. Armstrong says the jobs will return "when we see customer demand strengthening."
Officials from USW Local 1066, which represents 1,700 workers on the finishing side, could not be reached for comment.
The steel industry is on a roller coaster ride this year. The price of steel hit record highs in early 2008, but as the economy slowed in North America and Europe, steel orders have dropped sharply. Struggling automotive and appliance sales mean fewer orders.
"It just highlights the need for a new economic policy to get economy up and running again," United Steelworkers District 7 director Jim Robinson said. "It's shocking how soon the industry changed from great profitability to an extremely slow marketplace."
U.S. Steel took measures in recent weeks to slow production at Gary Works. At least 800 contractors were removed in early October.
, and hourly workers are required to take a mandatory week of vacation in December. They also closed the blast oxygen furnace on the south side of the plant and the No. 1 caster.
ArcelorMittal plans to cut output by nearly a third, but specific layoffs have not been announced. The company trimmed most of its contractor positions at Burns Harbor and Indiana Harbor mills in October.