On Monday — just as the nation was being told the country is officially in a recession — workers at ArcelorMittal in Georgetown were informed the mill will cease operations this Friday and will remain closed until Jan. 12 because of a lack of orders for their product.
Company spokesman Adam Warrington said ArcelorMittal recently announced it will scale back global production by about 35 percent. The effort includes a 30 percent cut in the company’s long carbon unit resulting in the layoff of about 280 workers at the Georgetown mill.
He said the company is “carefully monitoring the (economic) situation.”
James Sanderson, president of United Steelworkers of America Local 7898, did not return messages left on his voice mail Monday and Tuesday.
Warrington said ArcelorMittal “is being forced to respond to the extraordinary economic environment we are facing.”
There is no guarantee every employee will be called back once the mill reopens. Warrington said the company is looking forward to “many” of employees returning to work as soon as it is warranted by market conditions.
“This development is in no way a reflection on the professionalism and dedication of our Georgetown employees. ArcelorMittal appreciates their efforts and assistance during this challenging period,” Warrington said.
While they are out of work, the employees will be eligible for unemployment benefits and they will continue to receive health care, a company official said.
Most workers who were leaving the mill Tuesday afternoon did not want to talk to reporters. One man agreed to speak but did not want to give his name.
“They say this is a recession. It’s a depression,” he said, adding this is a double whammy for his family. He said his wife is a Wal Mart employee and recently had her hours slashed.
The worker was asked if he feels the mill will reopen on Jan. 12 as announced.
“All I can do is hope and trust in the Lord because I just do not know what will happen,” he answered.
This has been a turbulent decade for the Georgetown steel plant. In 2001, when it had nearly 700 workers, the local mill was owned by GS Industries, Inc. which filed for Chapter 11 bankruptcy protection.
Around that same time, 24 employees were laid off.
In 2002, the plant went on the auctioning block and was purchased by Midcoast Industries its principal Daniel Thorne, who outbid Liberty Acquisitions of Florida for the mill.
The next year, the company once again filed for bankruptcy protection and union members voted “no” on a plan to take a temporary pay cut.
Later that year, the mill was ordered to close by a Bankruptcy Court judge. Altogether, 465 employees were out of a job.
In 2004, International Steel Group bid $18 million for the plant which reopened that year.
In April. 2005, ISG merged with Mittal Steel creating the largest steel company in the world. The merger between Mittal and Arcelor was announced in June, 2006.
Then, this year, the economy in the United States and around the world took a nose-dive. In October, the plant laid off nearly all of its workers for two weeks. When that layoff period was over, about 50 employees were not called back.
Last week, the company announced a “voluntary separation program” in hopes of reducing selling, general and administrative costs by $1 billion.
According to a press release, the program could reduce the company’s worldwide workforce by 9,000 by offering early retirement packages.
The shutdown is expected to cause Georgetown County’s unemployment rate to get closer to - if not exceed - the double digit mark. The county’s jobless rate was 8.7 percent in October, up one full point from September. The November numbers are expected to be released later this month.
When the steel mill was closed in 2004, the county’s jobless rate climbed to nearly 16 percent.
: 12/6/2008
You want to talk about being a man when you post a bunch of smack here and won't use your real name? I agree with the earlier post, you should really "go away". Either that or be man enough to tell a mill worker that you are happy they are out of work? Didnt think so........
: 12/6/2008
Thats right "go away" you must be sleeping pretty hard to dream up the bull you are posting. Lol, just another case of a yank coming down here and whining about something they want changed. To try to blame the union for the state of the economy is like trying to blame one raincloud for a hurricane. By the way everybody sees that you didn't respond to my earlier comment because you have no good response, not because you were bored by it, lol. The mill may close for a while but it will come back and you can whine some more. Until then we know what you stand for and will keep laughing about your useless self serving bull. Sleep well on those thoughts.
: 12/4/2008
IP union member: Why do you call yourself the 'little man?' You would not have to do that if you didn't belong to a union and you were MAN enough to face the world of WORK and making a living without someone helping you for a FEE. Grow up and join the majority and scrap the dependence on a union.
: 12/4/2008
It seems that some people is really upset about the amount of wages and the benefits the workers at the Steel Mill receive. Is this the real issue? Is it the union? Is it James Sanderson? Let's keep our fingers crossed and hope that the American Workers are brought down to the third world economic standards. Would the few complainers here be happy then? I wish James Sanderson worked at our plant. He is the only person in Georgetown that I know of that stands up and speaks out for the little man. I value and Trust James Sanderson. James Sanderson gets results. Keep up the good work James. Stephen, thank you for your prayers and support.
: 12/4/2008
I want Georgetown to know that at least one person in Charleston is praying for your community. I'm sorry about the news of the mill's closing. It's happening all over right now: North Charleston, Walterboro, Moncks Corner, Holly Hill, and Johnsonville. I grew up in a small, Georgia town and saw our two biggest employers leave in the course of my life time. It destroyed my father's furniture store so I have a spot in my heart for what you are feeling right now. I encourage all to take a step back and give this issue to God. In the midst of strife and turmoil, God provides opportunities. One door closes and another opens. These tough times will pass. Don't give up. Give it all to God and be greatful for what you do have: Health, family, friends, church, etc. I'll keep praying.
: 12/4/2008
Well im gonna say this...My husband works at the mill. I think they deserve every penny of the raise they got! The have very dangerous jobs!! I cant think of anyone who would go into that heat day in and day out, and work 12 hour shifts for less than they make. They work very hard for their money! As far as the union..I hate it! In my opinion, its only there for the ones who dont do their jobs..and for the so called "James Coffee Buddies"..For the guys who actually work and do not call in, when they need help you cant find James Sanderson anywhere..he will not answer his calls, he will not return them! But you can bet on onoe thing..they will get their Union Dues each week!!! Looks like the Union could help their fellow brothers this holiday season..use the dues dollars and pay a light bill or buy a childs christmas, put a little food in the pantry..something. But no, all we have is James missing again!
: 12/4/2008
Ameristeel Jacksonville, Ameristeel Charlotte and CMC Cayce SC are all shutting down production for the month of December and a short period in January. What is common between these Steel Companies is that they are all NON UNION sites. Why are they slowing production? Is that a union problem too? Or is it the economy? If it is the economy then why won't you accept that ArcelorMittal Georgetown is suffering the same down turn that every steel mill is facing? This mill was surviving fine before the market fell and nobody was complaining when the money was coming in and now that the economy has dropped everyone jumps on the union. Union or no union the mill will suffer the same as any other mill on the globe. India and China two of the leading markets for steel production have slashed it's production in excess of 20% which is unprecedented for those booming economies. I don't particularly care for the union but, it is not the cause of the layoff in Georgetown. As for (Go Away) why don't you go in and tell your boss or whom ever pays your salary and tell them to forget about your cost of living increase as well as your next raise because you want to save the company money. I don't think that will ever happen. When you cross either bridge coming into Georgetown both ArcelorMittal and International Paper are easy to see, if you don't like the way they look there is a road that goes back the direction you came from.
: 12/3/2008
Funny how the CBS Eving News today explained how labor is a company's largest expense, and how the UAW must make major concessions in order for Detroit's Big Three to survive. Compare the Big Three to imports; imports don't pay $75/hour to build cars, and they are not having the problems of Detroit. Some are expanding with new plants. Like has already been said, someone somewhere is making and selling steel for less with non-union labor. Steel mill workers who blindly follow their leader(s) should not be surprised if they find themselves looking for a job. Again. Don't bite the hand that feeds you.
: 12/3/2008
LOL: zzzzzzzz G'twn resident: I am too! I do believe that Sanderson and his union have had a direct 'cause' impact on the closing of the mill. I'm not isolating this particular closing but if Sanderson and the union were not active over the last 20 years, the mill would be financially sound. Anyone that thinks unions have not ruined the manufacturing segment of our economy is probably younger than 40. Most companies that have moved off-shore did so because they could hire workers for less... simple.
: 12/3/2008
to "Go Away" While I don't like unions and agree that they are outdated I have to say that being happy that people are out of work is something a pompous jerk would do. From your comments on the previous story that were removed you should live up to your name and GO AWAY. That mill supports a lot of people in this community and being happy that it is closed is assinine. I bet that you wont be happy when the taxes go up to make up for the revenue lost from the mill? Or how about the canal that the mill maintains that brings water in for the city? Ever thought of who is going to be responsible for that? I bet you wont walk up to a mill worker and say you are glad they are out of a job will you? I know the unions are not good for the workers but being happy the mill is suffering is heartless and I hope you will think about all the people out of work before posting again.
: 12/3/2008
Not sure if I agree with the statement that being unionized caused the closure. I'm not a fan of unions, but it's the poor economy that's biting into every business & industry. Until we get this mess fixed, everyone in every capacity will be affected somehow, even Wal-mart. Georgetown has always fought a tough labor market because we don't have enough industry here. If the economy doesn't pull up soon, it will prove very detrimental(sp) to a lot of us. Let's pray that things get better and those steel workers and a lot else get back to work soon.
: 12/3/2008
Don't know what happened to all the other comments on this subject. However, the closing of the mill was inevitable and it seems the time has arrived. Workers, give it up and seek employment elsewhere that is not involved with a union. Just because Dad or Granddad stuck it out with the union, you don't have to.
: 12/3/2008
The "unemployment rate" only counts the people getting an unemployment check from the Employment Security Commission. Those who are out of work, out of benefits, out of luck and have given up hope are not counted. That means that the homeless, people living in cars, those crashing with relatives or friends, those lining up at soup kitchens, food pantries or for $1 items at fast food outlets aren't being included. Add those people to the numbers and you'll get a "misery rate"--the "unemployment rate" without the rosy colored glasses of government statistics. The outlook is not good for anyone, rich, poor or anywhere in between. +++ PS: As to finger pointing, what matters right now is what needs to be done to help one another. Lawyers, historians and the similarly worthless can sort out questions of blame later. (And, like the various OJ juries, we can all argue endlessly about whether they got it right or not after that.) Otherwise, the time has come for local leadership--County Council chairman, the three mayors, the School Board chairman, the heads of the government Development, Planning Commissions, the head of Georgetown Tech--to convene, listen to their staff and the public, and then begin to plot a course of action. Hard times have arrived. Those call for hard work.
: 12/3/2008
what I love is the fact james sanderson no longer returns calls. Where are you james? Wanna bet he will not be out of work???
: 12/3/2008
Ben Dare: Your point is exactly why I say the Union is at fault for the current troubles. Yes, the economy certainly is not helping matters and no, the Union is not to blame for the economy. But the Union is absolutely to blame for the price of their product because the members were greedy. I hate to see the mill shut for any reason, but Americans need to wake up and see that every action they take has a consequence, whether positive or negative. Union members, especially Union leadership, needs to take responsibility for the end result of their demands: higher operations costs result in higher product price which results in lower demand for the product. Simple supply and demand theory. Every Union believer needs to quit shoving off responsibilty for their actions onto the 'global economy'. SOMEONE out there is making steel right now. That same SOMEONE is selling steel. The reason why is their price is lower than yours. Seriously, good luck to those that are out of work for the holidays. Its a bad time for you, I know. Remember though, that Christmas isn't about material gifts, its about the gift of life. Use it every day.
: 12/3/2008
It's a recession if it happens to someone else, it's a depression if it happens to you. These layoffs should come as no surprised to anyone. The extorted high labor cost has made this industry very sick. The steel industry and big three auto makers are both stuck with union contracts and constrants that will bankrupt them. Be careful of that raise you insisted on (under threat of a strike) you might just get it.