Market Segment
ArcelorMittal to Idle Certain Finishing Lines
Written by Sandy Williams
June 7, 2016
The new labor agreement between the United Steelworkers and ArcelorMittal USA has yet to be voted on but highlights of the contract reveal that the parties agreed to the idling of certain finishing lines at the North American operations.
According to the union contract summary, the lines include the 84-inch Hot Strip Mill at Indiana Harbor West, the No. 1 aluminizing line at Indiana Harbor West, the No. 2 Steel Shop at Indiana Harbor East, and the No. 5 Continuous Galvanize Line at Indiana Harbor East. The restructuring is necessary, said ArcelorMittal, to make the operations more efficient and improve capacity utilization. The agreement allows the redistribution of employees but no layoffs.
The Hot Strip Mill and aluminizing line have already been idled, displacing 300 and 80 workers, respectively. ArcelorMittal declined to provide dates for when the other lines would be idled.
“We are unable to comment on specific details related to the tentative labor agreement until it has been ratified by our USW represented employees,” said Mary Beth Holford, spokesperson for ArcelorMittal USA.
ArcelorMittal also agreed to invest $2.5 billion in the North American operations including upgrading the the No. 3 Steel Shop at Indiana Harbor West by adding a new caster, increasing steelmaking at the No. 4 Steel Shop at Indiana Harbor East, and restarting the No. 2 Continuous Galvanize Line.
The USW has instructed steelworkers to return their ballots on the tentative contract by June 21 for collection and counting on June 23, 2016.
(Source: NW Times)
Sandy Williams
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