Gary Works, U.S. Steel's flagship mill, stretches along seven miles of Lake Michigan lakefront. John J. Watkins, file, The Times
U.S. Steel laid off tin mill workers last week when it indefinitely idled its tin mill on the west side of the Gary Works steel mill.
The Pittsburgh-based steelmaker warned the state of Indiana in late December it would lay off about 244 employees at its flagship steel mill in Gary because of the declining tin mill business, but most of the workers were moved to other parts of the plant, Media Relations Manager Amanda Malkowski said.
"U. S. Steel worked closely with the United Steelworkers to create a plan that would lessen the effects of the potential layoffs brought on by surging tin imports," Malkowski said. "Thanks to the cooperation between labor and industry, about 200 employees were reassigned to new employment opportunities within U.S. Steel."
All of the workers should eventually be recalled at some point as positions open back up at Gary Works, USW District 7 Director Mike Millsap said.
U.S. Steel already started calling back steelworkers at the tin mill who were voluntarily laid off five months ago in anticipation of the idling. It found a need for tariffs of up to 296% that would price foreign imports out of the market in favor of domestically produced steel.
"Under our labor contract they have to ask for voluntary layoffs first," Millsap said. "The senior guys will often take the layoffs to let the junior guys work. They volunteer because they're hopefully more financially able to take the layoff than the younger guys."
Workers who were recalled complained of being bumped down from laborer grades 2, 3 and 4 to laborer grade 1. That's a difference in pay of about $1.50 to $2 an hour but the workers can regain that seniority over time.
Millsap said some displaced steelworkers were transferred to the Midwest Plant and other parts of Gary Works.
"Some went to the tin mill at the Midwest Plant," he said. "Some went to the hot end side of the mill. There were openings to fill on the east side and on the west side. They have openings from retirements they need to fill."
The tin mill at Gary Works may eventually come back, Millsap said.
Cleveland-Cliffs and the United Steelworkers union recently filed a trade case against cheap tin imports, winning an initial victory in front of the International Trade Commission.
"Our hope is that it's short-lived," he said. "It's not a permanent shutdown. It's an idling."
Tin mill imports surged 30% last year, leading U.S. Steel to idle the No. 5 tin line at Gary Works and then the entire tin mill there."
Tin is used in paint cans and cans for food like soup, fruit, vegetables, beans and chili. Canned food demand has been shrinking as more shoppers have come to favor fresh food, dispensing with processed food that has been taking up less shelf space in supermarkets. Many food manufacturers also have adopted alternative forms of packaging, such as microwavable plastic containers or cardboard cartons for soup.
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