Company sold to Japanese steelmaker
By ELIZABETH DONALD
Illinois Correspondent
Granite City, IL – The steelworkers’ union has reached a settlement with U.S. Steel over the way recent layoffs at the plant were handled.
U.S. Steel first idled the plant in the week of Oct. 1 but did not issue WARN notices, alleging that it was temporary. The announcement last month that the plant would be idled indefinitely meant WARN notices union representatives and legislators said.
United Steelworkers Local 1899 announced last week that they have reached a “make whole” settlement with U.S. Steel that covers members laid off during the first 60 days of the layoff, beginning the week of Oct. 1. Members should receive two months of back pay on the Dec. 19 pay date.
“Although the union feels that this does not fix or address the problem of why we remain on primary idle at Granite City Works, hopefully this helps lessen the impact of the hardship members are feeling because of the layoffs, especially during this time of year,” said Local 1899 President Dan Simmons in a letter to members.
Simmons said the union will continue concerted efforts to convince U.S. Steel – or any potential new buyer – to do what they believe is the right thing.
“Restart the primary areas of the plant at GCW and give us the chance to continue making some of the highest-quality steel in North America, and more importantly, put steelworkers back to work,” he said.
U.S. Steel did not admit any wrongdoing, but entered into the negotiations in early December to compensate the members.
“All workers deserve to be treated with respect and dignity should any employer make the decision to invoke layoffs impacting employees and their families,” Simmons said.
STATE AND FEDERAL SUPPORT FOR WORKERS
Simmons thanked Gov. JB Pritzker, U.S. Sen. Tammy Duckworth, U.S. Rep. Nikki Budzinski and state Rep. Jay Hoffman for their support and assistance in the efforts to help the laid-off steelworkers. Hoffman issued a statement in support of the settlement.
“I’m glad that these workers and their families will receive their back pay, and I still strongly encourage U.S. Steel to chart a better course forward that invests in these highly-skilled workers,” Hoffman said. “This situation has underscored the importance of the WARN Act, and I appreciate the work from United Steelworkers Local 1899 under difficult circumstances to secure what workers were rightfully owed.”
Budzinski said she was “encouraged” by the settlement.
“This is a victory for working families made possible by a combined effort to hold U.S. Steel accountable for their violations,” she said. “I’ll always stand up to ensure big companies give employees the dignity and respect they deserve – and their fair share of the profits they help generate.”
Budzinski also echoed Simmons’ comments, saying she would keep pushing for renewed investment in Granite City Works with the goal of getting the highly-skilled employees back to work.
U.S. STEEL SOLD
U.S. Steel announced Dec. 18 that the company had been sold to the Nippon Steel Corporation, the largest steelmaker in Japan.
As part of the agreement, the companies said, U.S. Steel, will keep its name and headquarters in Pittsburgh and all collective bargaining agreements with the United Steelworkers Union will be honored.
(The Labor Tribune will have more on the sale in the Dec. 28 edition.)
- Share this story:
-
-
-
-
-
-
-