Steel layoff plan of 2,444 hourly workers under discussion

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

BURNS HARBOR | ArcelorMittal and the United Steelworkers union are trying to find ways to minimize the impact of possible massive layoffs at the Burns Harbor plant before sending the matter to arbitration.

The company announced Friday it was filing a Worker Adjustment and Retraining Notice with the state indicating it could lay off 2,444 hourly workers at the plant in mid-January.

The state received the notice Monday, said Indiana Department of Labor spokesman Gary Abel. The notice says those who would be affected -- about two-thirds of the plant's employees -- "will be placed on layoff for an indefinite period of time over a 14-day period commencing on Jan. 25."

The company's notice indicates it expects the layoffs to be temporary, and that "subject to negotiations with the union, eligible employees can be voluntarily laid off on terms to which the parties agree."

For weeks, USW Local 6787 officials have been meeting with company executives to discuss ways to minimize the layoffs. The unsuccessful talks led to Friday's announcement, but the talks resumed Monday, union officials said.

"The negotiations process is not completed," USW District 7 Director Jim Robinson said Monday. "We have to negotiate a layoff minimization plan. If none is reached, each side submits a plan to (federal) arbitration, and the arbitrator chooses one."

Local 6787 President Paul Gipson said Saturday that the union would challenge the company's layoff proposal through arbitration or in court.

However, Robinson said it is "very rare" for an arbitration case to end up in court. He said the company and union have agreed to binding arbitration as part of a labor agreement approved in late August. The arbitration process "takes as long as it takes," Robinson said.

The company and USW reached a new labor agreement in late August that mimics one set by the union and U.S. Steel Corp. a month earlier. However, each agreement carries additional terms specific to each company and to each of the companies' facilities.

ArcelorMittal didn't return calls placed by The Times on Monday.

With the downturn in the U.S. and global economies, steelmakers have been making production cuts to help realign supply with demand and to stabilize steel prices that have dropped by 70 percent since July.

The operating rate for the domestic steel industry fell to 56.5 percent during the week that ended Saturday, the lowest rate since December 1986. As steelmakers slowed production, manpower needs fell, prompting cutbacks in contractors and calls for workers to take voluntary layoffs.

On Nov. 14, U.S. Steel announced is was laying off 677 workers at its domestic operations as well as eliminating all but essential contract workers.