ArcelorMittal warns of massive layoffs at US plants

Lakshmi MittalGlobal steel manufacturing giant ArcelorMittal said it may lay off 2,444 employees indefinitely at its Burns Harbor plant, Indiana in January, in keeping with its plan to reduce production in North American by 40 per cent due to fall in demand for steel in the US and worldwide.

The company has informed the United Steelworkers about the possibility of an "indefinite layoff" at the Burns Harbor plant beginning the second half of January.

The company made this announcement keeping in line with its plan to cut back on steel production in North America by 40 per cent due to weak demand for steel globally, according to the release.

"Potential work force reductions are a direct result of the extraordinary economic environment we are facing, and the company hopes to return workers to their jobs as market conditions warrant," the release said.

ArcelorMittal, which has nearly 4,000 employees at its Burns Harbor plant had said that the steel production at the Burns Harbor facility has been producing at a "significantly reduced rate" since October which had forced the company to idle two of its blast furnaces since last month due to lack of orders.

Jim Robinson, director of United Steelworkers District 7 unit, said the union is negotiating with ArcelorMittal to minimise the number of layoffs as the union was aware that the plant had no orders and no steel was being produced at the plant since the last two months and workers were sitting idle.