photo by Theo Tate
The U.S. Steel plant at Granite City has laid off an undisclosed number of non-union employees.
The U.S. Steel plant in Granite City recently laid off an undisclosed number of non-union employees.
The layoffs occurred a month after U.S. Steel announced it would be implementing an enhanced operating model and organizational structure in January to accelerate the company’s strategic transformation and improve customer service.
“Following the announcement of our new operating structure on Oct. 8, leaders examined organizational structures, work performed, and spending to find opportunities to more efficiently execute our strategy,” company spokesperson Amanda Malkowski said in a statement. “At the same time, we’ve been battling challenging market conditions, which means we need to truly become a leaner, more efficient organization faster. As part of this process, we are taking the difficult step to eliminate a number of non-represented positions in the United States.”
The Granite City steel mill wasn’t the only facility affected by the layoffs. In early November, the company laid off about 30 non-union employees in steel mills in two Minnesota towns, Mountain Lion and Keewatin, about 200 miles north of Minneapolis.
“Unfortunately, this was a necessary step in the execution of our strategy which will deliver cost and capability differentiation to create a world-competitive ‘best of both’ footprint,” Malkowski said. “It’s always difficult when we have to say goodbye to valued colleagues, but these moves will allow us to better manage our resources amid challenging market conditions.”
A year ago, about 500 laid-off employees returned to work at the Granite City mill after U.S. Steel restarted one of two blast furnaces and steelmaking facilities.
Granite City Works blast furnaces and its steelmaking facilities were idled in December 2015, resulting in layoffs of more than 2,000 workers.
Dennis Barker, vice president of the Granite City SOAR (Steelworkers Organization of Active Retirees) Chapter, said the prices and demand of steel are decreasing, forcing U.S. Steel to do some cost-cutting.
“When they cut cost, they’ll let some management people go,” he said. “We have layoffs at the plants in Detroit and Gary (Indiana). They apparently shut down a small tin mill in Chicago. About 60-70 members lost their jobs permanently there because of market conditions. The only ones that are affected here so far are their management.”