ArcelorMittal Next in Line to Announce Layoffs

“In order to maintain its position as a competitive and sustainable tin plate producer, ArcelorMittal Weirton will lay off approximately 100 employees for an indefinite period of time. This will occur in phases, beginning this week. The workforce reductions will be realized across the operation with reduced shifts across most production units.

“This was a very difficult decision to make, but it is necessary to align ArcelorMittal Weirton’s employment levels with challenging market conditions, which include decreased demand for tin plated cans and pressure from foreign imports.”

The Weirton plant produces cold rolled steel and tin plate products used in cans for the agricultural industry. Mark Glyptis, president of USW Local 2911 in Weirton, blamed the layoffs on a poor harvest season. “The substrate we produce to make tin cans is used to can tomatoes, peas, corn and primarily food, and it was a very poor harvest,” said Glyptis.

In July, NLMK Pennsylvania laid off 80 employees due to the Trump administration’s tariffs on steel imports. NLMK relies on imports of steel slabs from its Russian parent Novolipetsk Steel, which are subject to the 25 percent tariffs. NLMK USA was unable to secure an exemption for the slabs from the Commerce Department.

“This is what I predicted a year ago,” Bob Miller, president of NLMK Pennsylvania, told the Sharon Herald. “We’re running less turns and experiencing layoffs now because of tariffs.”

U.S. Steel has shut down two blast furnaces due to lower pricing and weakening steel demand. This week the company announced plans to lay off 300 workers at Great Lakes Works for a period of six months or more beginning Sept. 30. Analysts note that the company’s stock price has plummeted 73 percent since the steel tariffs were initiated on March 1, 2018, and net earnings in Q2 2019 fell 68 percent year-over-year.

Despite layoffs, declining prices and weaker demand, President Trump told workers last week at Shell Pennsylvania Petrochemicals that his tariffs have caused the steel industry to thrive.

“And, by the way, steel — steel was dead,” said Trump. “Your business was dead, OK? I don’t want to be overly crude. Your business was dead. And I put a little thing called ‘a 25 percent tariff’ on all of the dumped steel all over the country. And now your business is thriving.”

At a New Hampshire rally on Thursday, Trump doubled down on the success of the steel tariffs, citing them as a deterrent to the dumping of steel by foreign exporters.

“We’re doing steel. The steel industry is hot. They were dumping steel all over. They were destroying our companies. U.S. Steel now, all of them, they’re all expanding. The steel industry is back. It’s doing great.”