Steel Mills
US Steel Notifies 1,404 Employees of Possible Cuts
Written by Sandy Williams
April 20, 2015
US Steel announced another round of production adjustment cuts that affect the company’s tubular operations. Notice of potential layoffs were issued to 1,404 employees on Friday, April 17.
The latest round of notifications impact 404 management employees in Houston and other U.S. Steel tubular operations, 579 employees at Lone Star Tubular, 166 at Offshore Operations Houston, and 225 at Wheeling Machine Pine Bluff.
The cuts are a result of “a decline in tubular market conditions, which is impacting the plant’s products,” said the company in a letter to employees.
Sky rocketing import levels, unfairly traded steel products, reduced steel prices and the impact of low oil prices on the energy market have all contributed to the adjustments in production at US Steel.
Steelmakers in the U.S. have been facing challenging conditions in the past year. April steel imports are expected to be around 3.5 million tons although analysts are expecting the influx to begin slowing. Steel demand is picking up in the U.S. except in the energy industries. Steel capacity utilization had dropped to 68 percent and was reported Monday at just 70 percent by the American Iron and Steel Institute.
In its attempts to adjust to demand as well as cut costs under the company’s Carnegie Way, US Steel has issued notices of potential job cuts to more than 8600 employees just in 2015.
The USW put together the following listing of US Steel announced and potential production adjustments for 2014-2015 (not including the 1,404 mentioned above):
April 3, 2015: U.S. Steel confirmed 165 employees at its Irvin plant in West Mifflin will be temporarily laid off.
Mar. 31, 2015: All 680 employees at the company’s Minntac plant in Mt. Iron, Minn. were issued WARN notices as the company said it would idle a portion of the plant.
Mar. 25, 2015: U.S. Steel announced it would temporarily idle its Granite City Works in Granite City, Ill., as part of the move 2,080 employees were issued WARN notices.
Mar. 12, 2015: The company announced it will temporarily idle a portion of its Minnesota Ore operations. As a result, 412 employees at its Keetac plant in Keewatin, Minn. received WARN notices.
March 10, 2015: U.S. Steel said it was moving ahead with plans to idle its tubular steel plant in Lorain, Ohio, temporarily laying off about 614 employees.
Feb. 27, 2015: The company announced plans to permanently close the coke-making operations at its Gary Works facility in Gary, Ind., affecting about 300 employees.
Jan. 26, 2015: U.S. Steel informed 1,918 employees that it would temporarily adjust operations at three locations throughout Alabama and Texas.
Jan. 21, 2015: The company informed employees it will idle two coke making units and a tin mill in Illinois, impacting about 176 employees.
June 2, 2014: U.S. Steel announced it would indefinitely idle two tubular manufacturing operations, including its McKeesport Tubular operations, impacting about 260 employees.
Sandy Williams
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