US Steel plans to lay off hundreds of workers in Michigan

Daniel Fowler
August 21, 2019

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U.S. Steel Corp. will temporarily lay off hundreds of workers in MI, following the company's decision to halt production at its Great Lakes facility. Unfortunately, that did not materialize.

It is a decision first announced in June - when the company also said staffing at its Gary, Indiana plant would be adjusted.

The layoffs could last beyond six months and will impact almost every area of the facility - from blast furnace to finishing operations, a company spokesperson told Reuters. The company has already terminated 50 workers, while fewer than 200 more could be given the pink slip by end of September.

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The prices for hot rolled coils have slid by nearly 37 per cent from their peak in 2018.

The city of Gary and the state of IN have offered U.S. Steel a $47 million tax break package to help it invest $750 million IN modernizing Gary Works, its largest North American plant.

A U.S. Steelworkers union representative told Reuters that workers are expected to be laid off at the Gary Works plant, but U.S. Steel executives said there are no plans yet to cut the workforce. In an address to a crown in Pennsylvania, the president had stated that his tariff of 25 per cent on foreign imports had turned a dead steel business into a thriving enterprise.

The state's tax credits and worker training grants were tied to the condition that U.S. Steel retain at least 3,875 jobs at Gary Works.

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