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October 28th, 2009
- General
Georgetown South Carolina - Longer wait for steel mill reopening in Georgetown
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The watching and waiting for the buzz of activity to resume at the ArcelorMittal's Georgetown steel mill will likely have to wait until 2011, according to one official. United Steelworkers Union Local President 7898 James Sanderson said he got a call Friday from a corporate official to tell him, "Because of deteriorating market conditions our plant will not open up this year, and it probably won't open up until 2011." ArcelorMittal spokesman Adam Warrington did not confirm the dates, but did release the following statement on Monday: "ArcelorMittal has indefinitely ceased operations at the company's Georgetown facility, which will continue unless market conditions appreciably improve or the plant is put on a more competitive footing," he said. The Georgetown mill makes wire rod used in cars, bed springs, car seats and welding.
For the plant's more than 200 employees who have been out of work since the plant's shutdown on July 10, it means more than a year without full pay and overtime. Employees are eligible for unemployment benefits, plus supplemental pay called sub pay and paid training.
"It's very upsetting for the workers because they were looking at hurrying up and coming back to work," Sanderson said. "Some of their benefits are being reduced to a lower level. ... There's not that many jobs in Georgetown at all. Sub pay will be reduced after they have been laid off for six months, and after a year, it will be 40 percent of their base pay [for most workers]. It's getting bleaker and bleaker."
Sub pay is based on years of continuous service, base wage and length of unemployment. Worker base pay ranges from $18.09 to $24.34 per hour. Sub pay ranges from 60 to 80 percent for about the first six months; 40 to 60 percent after that for up to a year. After a year, it's 0 to 40 percent and cuts off at the two-year mark.
For example, a worker who makes $21.78 an hour for a 40-hour work week at mid level service - 10 to 20 years - would make $45,302.40 in base pay. Under sub pay, the worker would make 70 percent of their pay - $31,711.68 for the first six months of unemployment; after that, their sub pay would drop to 50 percent, or $22,651.20. After a year, it would decrease to 25 percent or $11,325.60.
"I'm ready to go back to work right now," said Paul Crooks, 58, a 30-year-veteran at the mill. "Look at me. I'm dressed and ready to go."
Crooks said he has kept himself busy since the idling of the plant keeping his bee hives. He owns about 14 colonies. He also said he is fortunate because he has paid off his home and cars.
"It's not really about me, it's about the young people who need a steady job," he said.
Marcus Jordan just shook his head when asked by Sanderson about the mill and it potentially reopening in 2011.
"I don't think there's going to be anyone here left to go back," Jordan said.
In August, ArcelorMittal, the largest steel producer in the world, offered to reopen the mill if workers agreed to accept a 32-hour work week and a $3.65-an-hour pay cut if orders fell to less than 50,000 tons per quarter. The union voted and rejected the offer.
Many of the workers said they turned down the offer because they felt the reduced hours and wages would not allow them to make ends meet. Workers said they were able to make extra money with overtime and incentives, and there was no guarantee how many weeks the mill would be open or that wages would return to normal after the recession ends.
Sanderson said the workers' vote is not to blame for the extended closure.
"I think the market is the reason why the plant is idle," he said.
Steel use has contracted but not as much as originally forecast, according to the World Steel Association's short-range outlook released Oct. 12. The group represents about 180 steel producers.
In 2008, the world used about 1.2 million metric tons of steel; in 2009, it is projected to be 1.1 million metric tons, and in 2010, it's estimated to be 1.2 million metric tons.
World Steel forecasts that global steel demand will return to growth in 2010 but will be moderate.
To help unemployed workers, Sanderson said he filed a petition in August with the U.S. Department of Labor for Trade Adjustment Assistance. If approved, it could mean an additional $351 a week for workers, and more training.
He expects a response on the petition within the next week. The steel mill qualified for the assistance in 2002 and 1981. Employees also have the option to transfer to one of the other 11 ArcelorMittal plants in the United States.
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