BY ANDREA HOLECEK, Times of Northwest Indiana
holecek@nwitimes.com
GARY | U.S. Steel Corp. has cut production at its Gary Works plant, removing 800 or more contractors and shuttering several operations as domestic and global steel demand continues to drop.
"It's not our policy to comment on updates on our operations,' said company spokesman John Armstrong, who wouldn't confirm the cuts. But, Joe Jarzabkowski, chairman of the grievance committee for United Steelworkers Local 1014, provided details of the company's recent actions.
Local 1014 represents about 2,300 hourly employees working on the "hot" iron and steelmaking side of Gary Works.
"They got rid of most of the contractors about two weeks ago to keep our people (steelworkers) working," Jarzabkowski said. "They've shut down one caster and are shutting down one BOP (basic oxygen furnace), and they've asked everyone to take a vacation week starting (Dec. 28)."
In an Oct. 21 letter, the company asked the hourly employees to take the week of vacation, excluding about 500 workers in coke making, those working in the tin mill and in operations that can't be shuttered. If workers don't have any 2008 vacation time left, they must use 2009 vacation time, according to the letter.
After hiring about 175 employees for the hot side during the past six months, the company instituted a hiring freeze Oct. 19, Jarzabkowski said.
On the finishing side of the plant, where the 1,700 hourly workers are represented by USW Local 1066, there are reduced work crews and reduced turns, said a union official who didn't want to be identified.
"Hot rolling is basically down," he said. "I believe we're operating at about 55 percent. We're moving people around to different units to do maintenance work to replace the contractors. What's happening here is very similar to what's happening (at mills) all over the industry."
The company hasn't discussed layoffs with the union, "but things are changing day to day," said both union officials.
Tuesday, the company said that because of the volatile global economic climate having significant negative effects on the business, it expects "to continue to operate at reduced production levels, corresponding with customer order rates" in the fourth quarter.