U.S. Steel to cut 175 salaried workers in Canada
U.S. Steel Corp. said on Tuesday it will eliminate 175 salaried, non-union workers in Canada as part of its companywide plan to reduce costs and increase efficiency.
Employees at U.S. Steel Canada's Hamilton Works in Hamilton, Ontario, its Lake Erie Works in Nanticoke, Ontario, and its corporate services division headquarters in Hamilton will be affected, said spokeswoman Courtney Boone in Pittsburgh.
Boone could not comment on job cuts. The company is under pressure to improve its stock and financial performance. Last week, it reported a fifth consecutive year of losses, including a fourth-quarter loss of $122 million.
“After taking a very close look at our operations for opportunities to make them more profitable and improve our cost structure, we have made the difficult decision to reduce our non-represented employment levels,” said Michael A. McQuade, who was named president and general manager of U.S. Steel Canada last month.
“The reduction is a part of an across-the-board program to reduce high administrative costs,” he said in a letter to employees. “This decision was not made lightly, but it is necessary to control our costs and help move our company into an era of sustained profitability.”
U.S. Steel Canada employs 723 non-union and 1,656 union workers, according to Boone. The company intends to notify employees by Feb. 12. They will receive severance benefits and outplacement assistance.
The company's program to improve operations, dubbed the “Carnegie Way,” has resulted in annual cost reductions of $175 million, executives said last week.
The savings include $100 million from unidentified projects and $75 million announced in October, mainly related to the shutdown of a steelmaking plant at its Hamilton Works, closing two aging coke plants in Gary, Ind., and other moves. Of that total, $150 million will be realized in 2014, said Chief Financial Officer David B. Burritt.
“We are examining all aspects of our business,” Burritt said last week in discussing the company's earnings report. “We are going to make struggling businesses profitable or admit we can't and exit them.”
CEO Mario Longhi said U.S. Steel intends to use an electric furnace and scrap metal to produce steel, replacing an aging blast furnace at a plant in Fairfield, Ala. The furnace, which is expected to be completed by mid-2017, would be more efficient and less expensive. The Fairfield blast furnace needs at least $100 million in upgrades to extend its life.
U.S. Steel shares rose 16 cents to $25.22 on Tuesday.
John D. Oravecz is a Trib Total Media staff writer. Reach him at 412-320-7882 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- EPA talks on pollution limits trigger protests, arrests Downtown
- Unemployment rate ticks up; 209K jobs added but less than expected
- Westinghouse wins deal to build nuclear power plant in Bulgaria
- It’s lights out for Bayer sign on Mt. Washington
- Sunoco Logistics’ 300-mile pipeline dealt setback
- Investor helps Anchor Hocking’s parent win reprieve from lenders
- 3 things to know about Do Not Call registry
- Roundup: Huntington Bancshares to cut 200 jobs; Kennametal posts drop in 1Q profit; more
- Software developers aim to ease crush of emails for businesses
- U.S. stocks slump as earnings disappoint
- Groups stand against ‘sub-minimum’ wage for workers with disabilities