ArcelorMittal to idle Cleveland plant; lay off 700 workers

09 March 2009

The world's larghest steel maker ArcelorMittal has has said that it will stop production at its Cleveland plant in the US by May, where about 700 workers would be laid off indefinitely, keeping only a skeleton staff of around 250 until the market for steel improves.

Keeping in line with the warning issued in November of massive lay-offs at its US operations, (See: ArcelorMittal warns of massive layoffs at US plants) 400 workers had already been laid off in November from a workforce strength of 1,440, when it idled its two blast furnaces.

Since the Federal law in the US requires a company to give 60 days notice for termination of employment, the 700 workers who will be laid off, will have another 60 days to retain their jobs and look for other employment, although that prospect looks bleak considering the massive unemployment in the US.

The company said that it will retain about 250 workers in order to carry out routine mandatory work such as fire watch, maintain the water treatment, boiler and environmental systems and the rest of the hourly workers may also be out of work until such time ArcelorMittal restarts at least one of its two idled furnaces.

In a written statement, the Luxemburg-based steel maker said, "This was a difficult decision to make, but the company is being forced to respond to the extraordinary economic environment we are facing. 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."

The workers union president of Local 979, Mark Granakis said, he had expected the company to cut more workers this month or next, "but I never thought there was going to be this severe a reduction."