Allegheny Ludlum says layoff numbers typical for season
One union representative for Allegheny Ludlum's Brackenridge and Natrona plants said there have been a larger-than-usual number of layoffs happening the past month.
But a company spokesman said the layoffs aren't out of the ordinary for the slower winter season.
Dan Martin, a general grievance representative for Local 1196 in Brackenridge, said about 120 steelworkers will be temporarily laid off next week.
Since Nov. 2, Martin said, the weekly number of layoffs has fluctuated, hitting a high of 219 temporary layoffs the week of Nov. 23.
Of those, 166 workers were called back this past week.
Martin attributed the layoffs to Ludlum getting fewer orders and the difficult times for the steel industry, compounded by President Bush's decision to lift tariffs on imported steel.
"Ask the President (Bush). Steel's taking a beating right now and he (Bush) didn't help us that much yesterday (Thursday)," Martin said.
Martin indicated the layoffs going back to last month were higher than usual.
But Allegheny Ludlum spokesman Dan Greenfield said the layoff figures are typical for the season.
"It wouldn't be surprising to hear in December the layoffs would go up a bit," Greenfield said. "It is a traditionally slow period for manufacturing."
Martin said business just isn't good and lamented what he sees as a decline at the mill.
"We had approximately 5,000 people (at Brackenridge) when I got hired in 1973," Martin said. "Now we've got less than 1,400. We used to be No. 1 but somewhere along the line, they got greedy. They kept all the profits and didn't reinvest in the company."
But Ludlum officials have touted their $35 million investment of two new 110-ton electric arc furnaces at the Brackenridge melt shop in Harrison. These will replace four smaller furnaces installed more than half a century ago.
Each new furnace will produce 110 tons of molten steel in three hours, while the old furnaces took up to five hours to produce 80 to 90 tons of melt apiece, according to company officials.
One of the new furnaces just went online, and the second is expected to be operational next October, Martin said.
"We've got two new furnaces going in here, but I just hope it isn't too little too late. We should have made renovations years ago to keep up with the technology. I hope I'm wrong," Martin said.
Messages left for the president of another union, No. 1138 in Leechburg, were not returned Friday. Union President Gary Bell could not be reached at the hall or at home.
In October, the new chief executive of Allegheny Technologies said he planned more layoffs to cut costs after the nation's largest specialty metals maker reported its eighth consecutive quarterly loss.
L. Patrick Hassey, who took over as president and CEO on Oct. 1, said the company's performance is a "long way" from where it needs to be, and said the parent of Allegheny Ludlum cannot wait for domestic or world economies to make the company better.
Allegheny Ludlum is the Valley's largest employer, with about 3,500 workers at melt and finishing shops in Brackenridge and Natrona in Allegheny County, and in Vandergrift, West Leechburg and Bagdad (near Leechburg).
