By Christin Nance Lazerus , Post-Tribune staff writer
cnance@post-trib.com
ArcelorMittal discharged 51 probationary employees from its Burns Harbor plant on Wednesday, union officials said.
United Steelworkers Local 6787 President Paul Gipson said the employees aren't technically covered by the labor agreement until they reach 1,040 hours on the job, but the union had urged the company to keep them on since the economy turned sour last year.
Gipson said a side letter agreement requires that the company hire these employees if there's an opening in the next two years.
"It's unfortunate," he said. "This is the worst I've ever seen the industry and the worst I've ever seen the economy."
The Burns Harbor plant laid off 490 of its 3,450 employees voluntarily in January.
About 900 of the remaining workers were scheduled for a 32-hour work week.
They were trying to avoid involuntary layoffs.
The steel industry has been hit hard by the recession, with few new orders as the automobile and appliance industries face increasingly difficult times.
Gipson said plants aren't likely to see a rise in orders due to the federal stimulus package until June. "I think the stimulus is about three months out before we see anything," he said.