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2 Chicago plants to close next year; some jobs will be cut; others transferred

600 Ryerson workers affected by restructuring

600 Ryerson workers affected by restructuring
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CHICAGO | Ryerson, the steel distributor purchased by Platinum Equity LLC in October, plans to move or eliminate 600 jobs as it restructures operations and closes its 111th Street and 16th Street operations next year.

As it phases out the Chicago plants, an as-yet undetermined number of employees will be transferred to other Ryerson facilities, which could include the company's processing plant in Burns Harbor. An as-yet unknown number of jobs will be eliminated, Ryerson spokeswoman Patti Buckland said Tuesday.

"We will be transitioning the bulk of the production work to Burns Harbor that duplicates what we do in warehousing and processing," Buckland said. "How many workers will be involved and how it will work, we're in the early process of working through."

Approximately 70 production and maintenance workers at the 720 E. 111th St. plant are represented by United Steelworkers union Amalgamated Local 9777. About 20 employees are commercial workers, most of whom are expected to be transferred to other Chicago-area Ryerson offices, including its corporate headquarters at 2621 W. 15th Place, Buckland said. Approximately 300 other jobs are expected to be cut or transferred from the corporate office.

The International Brotherhood of Teamsters represents the majority of the hourly work force at the company's distribution and service center, 2558 W. 16th St.

"We've just started conversations with them (unions) on how the employees will be treated and what opportunities will be available to them," Buckland said.

Joe Fabbre, staff representative for USW Subdistrict 1, Distinct 7, said he had a preliminary meeting at the 111th Street plant Monday.

"A majority of the workers should qualify for shutdown benefits and we're trying to determine how to help the others," he said Tuesday. "If everything falls into place, they plan to have it shut down in the first quarter."

Ryerson also is planning to shut down the plant's third shift and lay off workers, using seniority "bumping" rights in the next few weeks, Fabbre said.

"So, there should be some reduction in personnel there before end of the year," he said. "We plan another meeting before Christmas with the company and union to try to get benefits for those who will be losing their jobs. Fifty-plus (workers) qualify for some form of pension."

Copyright 2012 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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