Citing decreasing demand, U.S. Steel Corp. (NYSE:X) announced it'll be shutting down its Hamilton Works facility in Canada.
Clueless Canadian politicians entered the fray, saying things like the government should “stand up for steelworkers by acting to protect their jobs.” NDP Leader Andrea Horwath said, “I’m calling on the McGuinty government to play hardball and take the lead in derailing U.S. Steel’s plan to close down in Hamilton.”
The truth is it's really nothing but a response to shrinking demand for the product produced in Hamilton.
Steel analyst Chuck Bradford noted, “Hamilton produces slabs. There are just no customers for slabs at the moment. I would say this move is 90 percent market driven and 10 percent about the negotiations.”
The socialist unions, who seemingly can't grasp markets and economic conditions, continue to battle giving up outrageous perks which the business can't support any longer. Doesn't the sovereign debt crisis in Europe and the term austerity have any meaning to them?
Unions continue to think and operate like they're living a hundred years ago, rather in the 21st century.
Negotiations referred to by Bradford are between US Steel and a little over 1000 steelworkers who refuse to give up some vacation, pension indexing, and other things they're being asked to reduce.
US Steel spokesman Trevor Harris said, “We continue to review and analyze market conditions and the impact they’ve had on customer orders. We can’t speculate on when market conditions will improve enough to necessitate restarting the facility.”
Most of those familiar with the Hamilton operations say the shutdown will last for at least six months.
3 comments:
Ray, it always amazes me how someone who has probably never been inside a steel plant can make comments about our 'outrageous perks'! After spending 35 years in Stelco, working in grease and grime, near red hot furnaces, breathing in toxic fumes, and working shifts for 26 of those years, I truly believe I have earned my vacation! Pension indexing has never offset the cost of living for pensioners, but has helped some. There has been virtually no negotiation, although the media keeps talking about it. These 'outrageous perks' were given to us instead of pay raises in many contracts. Deferred wages is what we refer to our pension plan as. We as workers, were all willing to share in the pain in 2009, but only the salaried employees were kept in the plant. Arcelor-Mital (Dofasco) is starting up it's last blast furnace, and we are shutting down our only one. Go figure....
Hamilton also finishes steel coils that are produced and pickled at the Lake Erie Works. The Cold Mill and z-line is still operating so only a part of the Hamilton operation is shut down. If US Steel redirected the Canadian destined orders now being produced at various US plants then the finishing operations would be going very strong. As it is , Lake Erie Works is going full out and doing quite well.
I think any "debt crisis" in the world today has been caused by the white collar worker.....no the blue collar worker. Funny thing is, those white collar workers would sooner blame unions and everyone else but themselves.
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