by MARK REUTTER
Steelworkers and Severstal North America have agreed to voluntary layoffs to reduce costs at the Sparrows Point mill, according to documents released to union members by John Cirri, president of United Steelworkers Local 9477.
The agreement, to go into effect January 3, allows employees to elect to take five-week or ten-week unpaid furloughs. Employees will be recalled to work at the end of their furloughs with this important caveat – “unless, due to business conditions, their layoff is converted to a forced layoff.”
Another provision says that “this agreement shall not be used to permanently reduce the current workforce level” unless the agreement is superseded by a workplace restructuring agreement.
Severstal had threatened to begin forced layoffs Christmas week as part of its plan to eliminate 640 jobs at the Point by March 2010. Such forced reductions are now on hold, sources say, in part because of union opposition and in part because mill orders have increased significantly in recent weeks, reflecting the broader uptick in U.S. manufacturing.
