Local
  
Steel mill closure in 2009 was bad news for the economy
Published Thursday, December 31, 2009 4:35 PM
Georgetown steel mill workers joined the numbers of unemployed this year when the mill was closed indefinitely.

 

  

GEORGETOWN, S.C. —  The Georgetown steel mill remains closed, after a long struggle this year over cuts in benefits, hours and pay.

But that is not the only problem to impact the mill.

The market for the product remains soft, while imports continue to flood the market, according to union officials.

No agreement reached

Although national union officials said in August that there was a chance the mill could reopen, no agreement on concessions was reached and the gates remain locked.

Deborah Hayes-Cook, who works with the International Steelworkers Union, said this summer that it was the intention of the national organization to meet with local union officials.

Union members had already rejected a revised contract, that included a $3.65 pay cut. The contract could not be changed without a yes vote from union members.

There was a final “no” vote on concessions from employees in late summer.

The mill could remain closed for the next two years.

Weak market

 Steel industry analysts said throughout 2009 that there were no signs of real change in the demand for steel.

ArcelorMittal spokesman Adam Warrington said that market conditions must improve "appreciably" for the mill to reopen.

Mill employees received extra benefits and training under the trade assistance program because “the sales and production of wire rods by ArcelorMittal decreased absolutely during the relevant period and imports of articles like or directly competitive with wire rods produced by ArcelorMittal have increased,” according to labor officials.

The foreign competition impacted the jobs of full-time employees and those employed with on-site lease workers from Security Forces, Stein, Modis, Adeco and Grand Strand Personnel, according to a statement from the labor department..

Union President James Sanderson said he is pleased with the labor department's decision.

“The United Steelworkers Local 7898 is thankful that the Petition that we filed with the United Sates Department of Labor for the TAA benefits has been approved and certified,'' he said. "The TAA benefits were increased May 19th, 2009 by President Obama.  The workers here at ArcelorMittal Georgetown, Stein, Security Forces, including the management employees at these sites will now be eligible to participate in the TAA program.

“The TAA will provide the employees with a greater level of benefits and opportunity of a increased number of training programs. Participants will also be eligible for up to 156 weeks of unemployment benefits.”


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