Steel mill set to shut down indefinitely July 12

MYRTLE BEACH — Steel mill union officials last week rejected pay cuts and other concessions that mill owners had said could help stave off the indefinite shutdown planned for July 12.

Three committee members of the United Steelworkers 7898, Georgetown Steel manager Marcio Van der Put and the mill's attorney met Monday, said union President James Sanderson.

Plant officials asked for a $3.65-an-hour pay cut, but did not promise the pay would be restored to former levels in the future, Sanderson said.

"At the present time, the membership wants an assurance that when the market turns around, that their give backs are restored," he said.

Those assurances were not given, so the concessions were not accepted, Sanderson said.

Economic development director Wayne Gregory and Rep. Carl Anderson, D-Georgetown, met with ArcelorMittal company officials while attending the National Plastics Exposition last week in Chicago where they were told that it would help the plant remain open if the union allowed some concessions.

Gregory and Anderson asked plant officials that the 242-worker plant stay open because of its importance to the Georgetown economy, Gregory said.

Sanderson said it was disrespectful for the economic officials to meet with plant management without informing the union.

"It was a meeting that was set up, and it's great for city officials to meet with company officials," Gregory said. "Our only goal was to let the mill know that we want them here. We did not mean to disrespect anyone or cut anyone out of the loop. They indicated that if they made the concessions, it would help the mill stay open."

Gregory said he was not trying to imply that the union was to blame for the closure.

"I never said that because of the union that they would close ... The mill is struggling due to market conditions. James Sanderson is right about that," Gregory said.

Union members met with company leaders June 17 to talk about the future of the mill and possible concessions. At the time, the members turned down the pay cut.

The closing of the plant, which was announced in May, is not expected to last forever, Sanderson said. The worldwide market for steel has taken a dive in the past several months, according to steel industry officials.

Meanwhile, employees are signing up for training classes as part of their union contract, said Hannah Wendt, a training coordinator with ArcelorMittal.

Classes are being offered in motorcycle repair, electrician training, heating and air conditioning, and basic electronics. Some employees attended classes held last week on maintenance skills, she said.

The plant also is offering telecast conferences, so other plants can share their classes with the Georgetown plant.

The classes will continue when the plant closes, Wendt said. "We can combine resources with other sites and take advantage of those opportunities."

Several months ago, the union approved a contract that raised wages $3 an hour and promised additional training for employees.

The company, which produces one-tenth of the world's steel, said at the time it planned to increase shipments by more than a fifth by 2012 due to robust global demand.