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A follow-up on our story about layoffs at Sparrows Point

September 29, 2009 at 10:43 pm 3

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by MARK REUTTER

The possibility of mass layoffs at Sparrows Point, first reported by the Brew on Sept. 17,  is the subject of a front-page article in American Metal Market, a leading trade journal.

The article cites a memo from a union official saying that 580 union positions may be eliminated under a restructuring plan proposed by Severstal, the financially troubled Russian owner of the Baltimore county steel plant.

The article does not provide details about the proposed restructuring. The Brew reported that about 125 salaried jobs were terminated, effective September 30, as part of the restructuring. Several muted “parties” were held last week for departing employees, some of whom had put in 20 or more years at the mill.

Severstal is required by federal law to give advance notice if there is to be a mass layoff affecting 500 or more employees during a 30-day period. So far, such WARN notices have not been issued, and the company has declined to comment.

A former Baltimore Sun reporter, Reutter wrote “Making Steel: Sparrows Point” (2004) and keeps tabs on the steel industry atmakingsteel.com . He can be reached at reuttermark@yahoo.com .
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  • Bill Goodman

    That is the same memo that you cited in your erroneous article. The memo quoted was from Cirri, and had you read the article even said that it came from a section of the memo titled “Rumor Control”. As usual, great non-reporting on your part. I am sure that your former contributions are a major reason that the Sun is setting on that crap newspaper

    • Editor

      Mark Reutter says:
      “To Bill G: The memo you cite was from John Cirri, president of the Point’s USWA local. While the memo dismissed a rumor about immediate union layoffs, it also said, ‘The company did in fact recently present a draft restructuring proposal to me, and it would affect the hourly workforce by 580 people.’ I based my story on the Cirri memo and on additional information about the restructuring proposal and terminations of salaried positions. “

  • Paul Donoghue

    Reutter’s book, “Making Steel” is a must read for anyone interested in the rise and fall of America’s industrial might.

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