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The outlook for most of our industry remains gloomy. We are still in recession mode, reflected by lower overall prices and less demand for high-quality strength steel.
Several factors play a role in slowing demands for steel. Higher raw material prices for coal and iron ore are major contributors. Foreign steelmakers in Japan have lower shares than expected and this has forced others to adjust accordingly. Overcapacity is an even bigger problem. Many steelmakers were anticipating a huge recovery in May and June. Unfortunately, the startup of blast furnaces at many facilities has resulted in overcapacity.
The recent Memorandum of Understanding (MOU) between USW Local 6787 and ArcelorMittal USA has changed the competitive strategy for North America in a more positive direction for all of us at Burns Harbor. ArcelorMittal had shut down seven of nine blast furnaces in the U.S. sixteen months ago. The MOU (ratified by Union membership on May 17, 2010) requires that Burns Harbor C & D furnaces operate and produce iron even when fewer furnaces are needed to meet demands.
It is very possible that this language will be put to the test in the near future. ArcelorMittal may decide to pace the U.S. furnace operation due to overcapacity. Any reduction of iron making facilities, with the MOU in place, must take place at other ArcelorMittal Steel plants.
Although the start-up of D furnace did not go as smoothly as expected, we are now up and running and this is great news.
BURNS HARBOR
When prices were on the rise, it appeared our industry would create a new job market. With prices now declining, the job market looks bleak.
Indiana currently has an unemployment rate of 10.5%. The MOU for Burns Harbor will force job postings and new hires to balance present and future attrition from retirements, quits and deaths. We expect attrition to reach 4% in 2010 and 2011. As a result, Burns Harbor will see increased training at our Deerfield Training Center.
Burns Harbor should be at 85% capacity by early October, 2010.
MANAGEMENT INCENTIVE PLANS FOR BARGAINING UNIT!
The MOU allowed management to install new incentive plans for all departments. We are not in agreement with the new plans. Workers must be properly incented if Burns Harbor is to reach 90-95% capacity. You must spend money to make money. Our present rates are targeted for 25%. However, our ability to produce more tons per hour is significantly higher provided we are more favorable incented. We will be looking for changes to each plan based on tons, quality, and delay factors.
GOLDEN RULES OF SAFETY
Our Union is very concerned with everyone’s safety and we have many years of bargaining history that clearly show safety is our number one objective. Safety on, and off the job is every individuals responsibility.
I will never accept the idea that a normal person would intentionally injure themselves or someone else. If this were the case, it would not be labeled an accident.
The Golden Rules, which each of you received via mail, are not a joint effort between union and management. This is ArcelorMittal’s idea to be enforced by management. The same rules are to be applied to the plant and all its equipment including mechanical, electrical and energy that is used to make and finish steel.
In the recent past, our Union and management would work together to find better and safer work practices – to resolve unsafe acts or conditions. This resulted in vast improvements and less on (and off) the job accidents. Safety records of lost workdays and injury on the job improved dramatically.
Scare tactics and threats of job loss are counter productive. They are not effective tools to create a safe and healthful workplace environment. Our Union will never agree to enforce discipline for unsafe work related or accidental acts by our members.
STRESS ON THE JOB!
If an employer experiences an increase in discharged employees due to substance abuse, mental health issues, fighting or violence – something is dreadfully wrong and it just might be work related!
Stress on the job comes in many forms – few work breaks, inflexible schedules, long hours, prolonged exposure to heat, hostile work environment, increased demands to perform more than one person’s job etc…
Each of us has an obligation to one another; if you feel you are in need of help, please see a Union Representative who can provide you with information about our EAP Program, which can provide professional, confidential support that could change your life. Do not wait to let management address your problem in a discharge meeting.
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