October 12, 2008

USW not surprised on closure of ArcelorMittal wire plant

A union official of Montreal steel said that workers have known for several months ArcelorMittal was going to close one of its two Montreal wire factories.

Mr Denis Trottier a spokesman of United Steelworkers said that "They told us in January they were looking at closing one of their two wire factories.” He added that ArcelorMittal told the union then that it had lost USD 23 million in 2007 in the wire operations.

Mr Trottier said that "They gave workers a reprieve so they could review their business operations. They wanted to look at the 2008 market and how they could come out of it more profitable."

He noted that it was the second time in recent months the company has had bad news for its employees. In December, ArcelorMittal announced the closure of two steel rolling mills in Contrecoeur which resulted in the loss of 500 jobs.