Indiana Harbor steel plants hit by more layoffs

BY ANDREA HOLECEK, Times of Northwest Indiana 
holecek@nwitimes.com

EAST CHICAGO | ArcelorMittal is laying off dozens of steelworkers at its two Indiana Harbor steel plants as steel orders and demand slip to almost nonexistent levels, union officials said Friday.

"As a result of market conditions, ArcelorMittal has notified the United Steelworkers and other required stakeholders about the need for temporary layoffs at our Indiana Harbor facility, effective immediately," company spokeswoman Katie Patterson said. "At this time, we anticipate the layoffs to last less than six months."

The union has been trying to avoid a mandatory layoff for several months by attempting to get as many of its members as possible to take voluntary layoffs.

Union officials at the two Indiana Harbor plants estimated the combined number of layoffs could top 100.

Loren Hanson, president of the 1,400 member Local 1011 at Indiana Harbor West, said Friday, "There were 80 layoffs. There are less than 50 forced layoffs. The rest were voluntary."

Tom Hargrove, president of USW Local 1010, which represents about 3,850 steelworkers at ArcelorMittal's Indiana Harbor East plant, said, "Its not a large number, less than 50. We have to figure out how many retirements will take place and whether we can offset voluntary with retirements.

"This is going to be a moving target every week until we see some light at the end of this tunnel and the stimulus package gets people to start buying cars and washing machines. But all in all, we are doing relatively well considering everything."

Under the labor agreement between the company and the union, there must be an agreed "layoff minimization" plan before ArcelorMittal can cut workers with three or more years of seniority. The local's 500 workers with less than three years tenure don't have that protection.

Patterson said the company will continue to work with USW "to minimize the impact on our employees and their families."

"This development is in no way a reflection on the professionalism and dedication of our Indiana Harbor employees," she said. "ArcelorMittal appreciates their efforts and assistance during this challenging period."

In November, ArcelorMittal announced it was planning to lay off almost 2,444 workers at its Burns Harbor plant by the end of January. But the company and union negotiated the minimization plan that reduced the layoffs, which would have affected two-thirds of the plant's represented workers.

The agreement included the voluntary layoff of almost 500 of the plant's 3,450 workers and scheduling of a 32-hour workweek for a quarter of those remaining.

Steel markets have collapsed as car makers, appliance manufacturers, builders and other industrial customers in the United States and worldwide stopped or reduced production as the global recession has heightened.