Downsizing deals - Latrobe Specialty Steel cuts 20% jobs
Wednesday, 22 Apr 2009
It is reported that Latrobe Specialty Steel Co has joined other manufacturers by instituting temporary layoffs and an unpaid week off work, both of which are affecting up to 20% of its 825 employees on a weekly basis.
Mr Daniel DePuydt VP of human resources for Latrobe Specialty Steel said that "We've been trying to balance the work flow against the work schedules." He added that by spreading the cost reduction moves across the board, everybody takes some of the pain as the company tries to maintain its work force during this period of low orders.
Mr DePuydt said that the company's salaried workers must take one unpaid week off work, sometime in April and May, as their workload permits. He added that some hourly workers are on layoff in any given week. Those layoffs are occurring under terms of the company's contract with the United Steelworkers Local 1537, which represents production and maintenance workers at Latrobe.
It may be noted that Latrobe Specialty Steel started experiencing a low order book late last year and early this year. Orders declined as customers used up a backlog of inventory, and Boeing Co and Airbus cut aerospace programs.
