World's largest steel producer considers 9000 job cuts

[Omaha Steve]

http://www.laborradio.org/node/9980

With construction starts on the decline the demand for steel is on the decline. As a result ArcelorMittal, the world’s largest steelmaker, is considering 9000 job cuts. The company already announced earlier this month that it would be cutting output by 30 percent. The job cuts won’t come from production, but from sales and administration.

[madeline_con]

1. Cheap Chinese steel is probably a big factor. n/t

[doc03]

3. Not yet but it will be, that's what happened in the

late 90s and early 2000s. The Asian and East European economies were in a recession and in order to keep their people working they dumped steel and their unemployment in the US. The Clinton Administration did nothing, we had around 40 steel companies go under then. Another interesting fact the Auto Industry went to Washington and testified in Congress against tariffs on illegal steel imports. Their attitude was, we want cheap steel, let the American companies die. Interesting now when the auto industry is on the line isn't it.

[doc03]

2. Severstal has also cut production

25% in their Russian plants, 30% in their US and Italian plants. I have worked in the industry for 38 years and have never seen the steel market crash so fast and deep. A couple weeks ago you had to have 37 years service to hold a job unless you were in a critical job or a f-----g suck-up..