Tag: Steel Industry

Those Steel Promises

Closing Thought–30Dec19

Does anyone remember the promises Trump made in 2016 about the return of our industries like steel?

If you are a Trump supporter you will NOT remember that lie or that promise broken…..

Just to let Americans know…the steel industry is struggling and NOT returning….as a matter of fat it is closing down another plant…..

U.S. Steel Corp. announced this week that it will close a mill near Detroit, laying off more than 1,500 workers as it tries to address financial losses.

The news comes just months after U.S. Steel announced it would be laying off 200 workers at the same mill, Great Lakes Works. 

U.S. Steel said they expect to end the mill’s iron and steelmaking operations by April 1, 2020, with another part of the mill closing by the end of 2020. The estimated job loss is 1,545 workers.

Steel production will instead be shifted to a plant in Gary, Ind., where the company has invested $750 million after both the city and state gave U.S. Steel tax breaks. Those tax breaks aimed to keep at least 3,875 jobs at the plant.

The changes, along with a plan to slash its dividend and suspend stock repurchases, come as the company predicts major losses in the fourth quarter of the year. According to MarketWatch, U.S. Steel reported an adjusted loss of $1.15 a share in the fourth quarter. The number is far more than analysts’ original projection, which put losses at 62 cents a share. 

“We are conscious of the impact this decision will have on our employees, their families, and the local community, and we are announcing it now to provide them with as much time as possible to prepare for this transition,” CEO David Burritt said in a press release.

“These decisions are never easy, nor are they taken lightly.  However, we must responsibly manage our resources while also strengthening our company’s long-term future – a future many stakeholders depend on.  We will be taking steps in the weeks and months ahead to assist impacted employees by providing additional education about benefits available through our company, as well as community resources.”

The announcement comes as steel has been at the center of President Trump‘s ongoing trade war with China. After the first round of tariffs, the White House celebrated domestic steel price increases and Trump said tariffs were rebuilding the industry, but the prices have since seen a sharp decline.

The U.S. and China have closed in on a new trade deal this month, and are working out the final details. Officials said the deal involves lifting some U.S. tariffs on China, while Beijing has agreed to purchase more agricultural products from the U.S.

(thehill.com)

Just another lie that will go unchallenged…..

We hear all the time just how good the economy is doing….but do not ask the steel workers they may crap all over the “good news”….

I Read, I Wrote, You Know

“lego ergo scribo”

Closing Thought–10Sep18

Strike!

Something that is not in the news much these days….a labor strike.  Seems that the industry that may benefit most from Our Dear Leader’s tariffs is the steel industry and they may go on strike……

US Steel workers are fired up and ready to strike if a new contract isn’t reached soon, the Times of Northwest Indiana reports. Workers for the Pittsburgh-based company voted nationwide this week to approve a strike if talks involving health care costs, retiree benefits, and wage increases don’t work out—at a time when their employer is apparently rolling in money. “Angry USW members conducted strike authorization meetings at each US Steel local over the past week,” the United Steelworkers said in a statement to workers, adding that there was “an overwhelming ‘yes’ vote in every local. Many locals reported that their results were unanimous.” A three-year US Steel contract for roughly 16,000 USW workers ran out Saturday.

Don Furko, president of USW Local 1557 in Clairton, Pa., says workers are pushing back at a time when President Trump’s policies are benefitting US Steel: “Between the tariffs and the tax break for corporations, they stand to make $2 billion this year,” he tells the Pittsburgh Post-Gazette. US Steel says it’s offering workers profit-sharing of at least $6,000, a signing bonus of $4,000, wage increases starting at 4%, a 15-cent hourly increase to 401(k) retirement plans, and a one-time $5,000 health-care bonus. But Farko says workers still have too many out-of-pocket health care costs for family coverage. The pro-strike vote surprised steel-industry sources, says the Post-Gazette. There hasn’t been a US Steel work stoppage since the company locked out workers for six months in 1986.

As an old labor activist it is good to see the workers taking control once again.  No matter the outcome…..the workers are asserting themselves once again…..but the “Man” will make sure this goes nowhere.

Will the National Guard be called in to “break” any strike….

But the gauzy, halcyon portrait of the New Deal does not stand up to the reality of the Little Steel Strike of 1937 that is the subject of Ahmed White’s magisterial The Last Great Strike: Little Steel, the CIO, and the Struggle for Labor Rights in New Deal America that I discussed in a previous CounterPunch article focused on identity politics and the racism endured by Black steelworkers. For those new to the topic, “little” refers to the group of companies that blocked the CIO from organizing its workers, as opposed to US Steel, the “big” company that had they had come to terms with in March 1937. Little Steel consisted of Republic Steel Corporation, Bethlehem Steel Corporation, Youngstown Sheet & Tube Company and Inland Steel Company. Despite being called “little” in comparison to US Steel, each ranked among the hundred largest firms in America

https://www.counterpunch.org/2016/12/23/fdr-and-the-little-steel-strike/

Would Our Dear Leader call out the Guard to break a strike?