Citing an "extraordinary economic environment,"ArcelorMittal said Wednesday it planned to indefinitely layoff 978 employees at its Indiana Harbor facilities.
The company said it alerted the United Steelworkers and other stakeholders of the action Tuesday in accordance with the Worker Adjustment and Retraining Notification Act.
A letter from the company posted on USW Local 1011's Web site said the layoff would be temporary and for an indefinite period of time during a 14-day period starting July 12. USW Local 1011 represents employees at the Indiana Harbor West facility.
ArcelorMittal will idle iron-producing operations at Indiana Harbor West until market conditions improve. Iron production will remain at Indiana Harbor East's No. 7 blast furnace, according to a statement from ArcelorMittal's U.S. headquarters in Chicago.
United Steelworkers Local 1010 President Tom Hargrove said the layoffs mostly will affect employees at the Indiana Harbor West facility. Local 1010 represents more than half of Indiana Harbor East employees.
"Until we start building things in this country and we start putting people to work, it's going to get worse," Hargrove said. Hargrove said it's important the country needs to focus on maintaining its manufacturing presence instead of becoming solely a consumer nation.
Jim Robinson, District 7 director for the USW, said it's important to note that with ArcelorMittal's announcement, under the current contract, the company and union will begin negotiating a layoff minimization plan. Robinson said the negotiation process hasn't started yet because the announcement was just made Tuesday.
In November, ArcelorMittal said as many as 2,444 employees at its Burns Harbor facility could be laid off by January. After negotiations, the number of people voluntarily laid off was under 500. Robinson said that the past results can't predict how many jobs could be saved in East Chicago.
ArcelorMittal is maintaining temporary global production cuts at a level of about 45 percent, as announced April 29.
"This was a difficult decision to make, but the company is being forced to respond to the extraordinary economic environment we are facing," the statement said. "We will be carefully monitoring the situation, and we look forward to many of our employees returning to work as soon as it is warranted by market conditions.
"This development is in no way a reflection on the professionalism and dedication of our Indiana Harbor employees. ArcelorMittal appreciates their efforts and assistance during this challenging period. We will continue to work with the USW to minimize the impact on our employees and their families."
U.S. Rep. Pete Visclosky, D-Ind., said in response to the announced layoff: "I am deeply saddened by today's terrible news, and my thoughts and prayers are with the workers who are being laid off and their families. I will continue to do everything I can to stabilize steel to protect steelworker jobs, help our economy recover, and create new opportunities in Northwest Indiana."
