U.S. Steel Canada is laying off at least 56 workers following its decision to idle its Hamilton coke ovens indefinitely.
The company announced last week it would hot-idle its coke battery due to an industry glut of the steelmaking ingredient. The decision affects about 100 of the 600 workers remaining at the beleaguered Hamilton plant.
The Canadian arm of U.S. Steel is undergoing court-monitored restructuring under the Companies' Creditors Arrangement Act. The company has indicated, in court documents, that it plans to sell its Hamilton and Nanticoke plants by next October.
The company issued 56 layoff notices Monday — and more could be on the horizon as sewage treatment operations linked to the coke ovens wind down, said Gary Howe, vice-president of United Steelworkers Local 1005.
"It's disappointing our workers in Hamilton are paying the price to allow plants in the States running at high capacity," said Howe, noting U.S. Steel Corp. recently reported its highest quarterly operating income results since 2008.
"Unfortunately, the local has become very good at dealing with layoffs over the past 25 years."
U.S. Steel Canada spokesperson Trevor Harris didn't directly respond to questions about the latest layoffs, but reiterated the company's statement about the need to "temporarily" idle the coke ovens due to market conditions.
His statement said about 100 workers will be affected by the move, but the company "will endeavour to reassign them where and when appropriate."
Howe said some of those 100 workers will stay on the job monitoring the hot-idled coke ovens, while others could be reassigned to ongoing operations like the cold mill or Z-line coating facility, depending on seniority and qualifications.
It's also possible an unspecified number of laid off workers could temporarily fill vacancies at the Lake Erie Works, he said, but it's unlikely that would account for more than 15 people.
"We're still negotiating a lot of these things," he said.
The company statement said the battery will remain idled while the restructuring process continues, "and appropriate options, including the potential sale of the asset are considered."
Hamilton Councillor Scott Duvall expressed frustration at the news and suggested the company is "bound and determined to take the value out of the plant," despite the stated desire to sell.
"It's very sad news. … It seems like they've already made the decision to start shutting stuff down," said Duvall, who sits on the city's steel committee.
Duvall said an updated report on the economic impact of losing U.S. Steel is expected by the end of this month.
Source: insidehalton.com
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
![Steel Insights](/assets/images/news/coal-insights.jpg)
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
![Steel Insights](/assets/images/news/ICMW_Jan09.gif)
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
![Steel Insights](/assets/images/news/ISMW.gif)
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
![Steel Insights](/assets/images/news/SteelInsights.jpg)
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.