Steel mill seeks layoffs
Tribune ChronicleWARREN - SeverStal Steel is asking workers for voluntary layoffs following reports of decreased orders and a downturn in the market.
Orders were already down when the blast furnace was idled in mid-October for maintenance following an economic slowdown. Workers were not laid off then, but were instead assigned maintenance tasks and training during that time.
However, now the steelmaker, formerly known as WCI, is urging workers to sign up for voluntary layoffs ''to help all of us get through this difficult time,'' according to a statement.
Reports also are circulating among workers that significant layoffs are looming; however none said they had yet received any official written notification.
''The blast furnace has been down since October, and since then they have not had more than 80 orders,'' said a person in a managerial position, who spoke on the condition of anonymity. The employee estimated the orders received would be enough to keep workers busy for only three or four days. ''It's amazing they haven't had layoffs yet. If the blast furnace is down, everything is down.''
According to earlier statements by the company, the furnace was supposed to be idled only until Nov. 11. The furnace converts coke, iron ore and limestone into molten iron.
An internal statement from the company said orders have not reached a level that makes it cost effective to turn the furnace back on.
Workers who did not wish to be identified said they'd heard layoffs could take place in January, and could impact as many as 1,000 workers. A union official who did not want to be named said the rumor of 1,000 layoffs was not true.
A woman who answered at the home of Ed Machingo, president of the United Steel Workers 1375, said he would not comment and hung up Thursday evening.
Company officials did not return messages left Thursday evening.
Elected officials in Howland and Warren, where the mill is partly located, said they had not been notified of layoffs at the plant.
SeverStal employs about 1,200 workers. Under WCI, the plant had emerged from bankruptcy May 1. Two weeks later an announcement was made that Russian steelmaker SeverStal had entered a binding agreement to buy WCI for $370 million.
The mill makes flat-rolled steel. It has been in operation since 1912 when it first began operations as Trumbull Steel Co.
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fltrplntman
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12-07-08 6:47 AM
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BandBnola.. You were making a joke... Right?? Steel, No way...Cars? Well they are making the Chevy Kruze better than the US can... Oh wait, we aren't building the Kruze. :-)
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BandBNOLA
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12-06-08 5:35 PM
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Russians make better cars and steel.
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cortlandmom
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12-05-08 3:03 PM
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I have heard the same thing about Severstal. They put a lot of money in the plant ot update and keep it going. The steel industry is suffereing all over. They will bounce back and get things going again.
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fltrplntman
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12-05-08 2:49 PM
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In my honest opinion, Severstal has treated us well. You cannot blame the Russians for the trouble our mill is having... The stock market fiasco caused this. We have no orders. The same thing happened at other mills too. Servestal could have been real pains and laid us all off when it all started, but they didn't. They tried to utilize us to do clean up and maintenance work to hold on to see what happens. The company ASKED us, basically, to take a voluntary layoff. 200 people have done so. Now they are getting scarce on money, and may force a layoff. This article was written as if the writer was sitting in a bar jotting down what was overheard.. Everything was anonimous.
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XANADU440
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12-05-08 10:56 AM
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IT`S ONLY STARTING TO GET SMELLY AROUND HERE , THE WORST IS ON IT`S WAY....SAD TO SAY ... I SUPPORT MY UNION BROTHERS AND SISTERS AT SEVERSTAL
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accstud
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12-05-08 10:23 AM
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Someone was laid off 4 weeks ago when the blast furnace went down? He must have took the voluntary layoff as they have not yet made it manditory.
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cortlandmom
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12-05-08 10:14 AM
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Sad part of it is that it is not over yet.
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Mark33
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12-05-08 9:23 AM
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Russian Roulette..... It's still better than the company going out of business completely, which would have happened had the former owners continued to operate.
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OldManGrump2
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12-05-08 8:47 AM
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I hope Mayor O'Brien has taken the layoffs into account when he configured that lousey budget of his that got rid of so many safety forces and kept his friends and relatives on the city payrolls. I suspect the mill will be down most of 12009 and 2010 from what I have heard from some management insiders at Severstal.
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cortlandmom
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12-05-08 8:11 AM
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My sisters husband works there and was laid off 4 weeks ago. Tribune needs to get your story right. He was not the only one laid off. They only have enough work to work them 1 week a month for the first 6 months of next year. Any other inside information you need.
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