GRANITE CITY, Ill. — Hundreds of steel and iron workers in the Metro East are trying to figure out what's next.
Workers were temporarily let go from U.S. Steel Granite City Works and will likely be off the job for several months.
Two weeks ago, U.S. Steel announced it was temporarily idling furnace B at the Granite City steel plant.
According to a statement on Sept. 18 from a U.S. Steel spokeswoman, the move is "risk mitigation" in response to the United Auto Workers (UAW) strike.
Here is the full statement:
"Following the announcement of UAW strike actions, we are executing our risk mitigation plan to ensure our melt capacity is balanced with our order book. As a result, we have decided to temporarily idle blast furnace ‘B’ at Granite City Works and are reallocating volumes as needed to other domestic facilities to efficiently meet customer demand. We thank our employees for working to ensure the temporary idling of the furnace will be conducted safely and efficiently. We do not take these decisions lightly and will continue to monitor and assess market conditions. It would not be prudent to speculate as to how long we expect the idling to last, but we currently believe that layoffs will last less than 6 months."
It's a cycle Michael DeBruce has seen, as their restaurant Park Grill sits near the company. His 67-year-old family business has been in this spot for nearly two decades.
He said this is the fourth time he's seen this happen. DeBruce said steel-making and iron workers provide about 30% of their business.
A loss of employees could mean a loss of profit.
"The trickle-down effect affects to so much more than what it is inside U.S. Steel," DeBruce said. "They are coming here to buy gas, buy food. It helps all of us."
Also keeping the family tradition alive is United Steelworkers Local 1899 President Dan Simmons.
"My dad worked there 30 years himself and then I got hired with my twin brother," Simmons said.
Now, he leads the pack of 1,500 members. Simmons said on Sunday, 262 employees were laid off.
"I have a handful going out in a week or two and at the end of the month, we have some learners that I've been informed about ... apprenticeship guys... so, 30 or 40 more then," he said.
Simmons believes the sudden decision was a knee-jerk reaction.
"Our book was fine, our order book is still strong. They'll bring slabs from other locations. I think we've shown we can do it and that makes us an easier target because we can take it down and bring it back up," he said.
The change also comes more than a year after U.S. Steel announced a plan to sell the plant.
In June of 2022, U.S. Steel told the Pittsburgh Business Times, a sister publication to the St. Louis Business Journal, that it planned to sell two blast furnaces at its big Granite City, Illinois, facility. The company said the sale of the blast furnaces would result in an estimated 550 jobs remaining out of 1,500 at Granite City Works.
The plant would be sold to a company called SunCoke Energy. They would use the blast furnaces to produce a type of crude iron called pig iron.
U.S. Congresswoman Nikki Budzinski is also questioning this decision and said she believes they are using a loophole in a law called the Warn Act to push layoffs through quickly and avoid having to give 60-day notice.
Simmons claims they only had a week's notice.
He believes the company using the language of a "six-month temporary lay-off" it's one way to go around the Warn Act.
While Simmons believes employees will come back, he's not shy to admit morale is low.
"We had a plant idle in 2009 that lasted six months and 2015, it lasted longer. Some guys impacted in the same areas now, were impacted for two years and three months," he said.
Now, they work to help the workers.
There will be informational meetings for members starting at 9 a.m. on Tuesday to help with benefits.
As for DeBruce, he aims to serve them with comfort and support in this season of change.
"It's bad for them and all of us," DeBruce admitted.
5 On Your Side asked the company what would happen if the UAW strike ended.
Here's their response:
"While the UAW work stoppage and the potential impact it may have on other end markets was a catalyst for our decision, we will continue to monitor our order book to ensure our melt production matches customer demand."
Layoff Information Meetings
Date: Tuesday, Oct. 3, 2023
Where: GC Township Hall2060 Delmar Ave Granite City, IL 62040
Time:
- 9 a.m. - Last names beginning with A-E
- 11 a.m. - Last names beginning with F-N
- 1:30 p.m. - Last names beginning with O-Z
If you have any questions, call the Union Hall at 618-452-1899.
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