In the largest steel labour cut-back so far this year, the United States Steel Company announced last week that it was to lay off 2,700 workers at its plant in Youngstown, Ohio.
In the largest steel labour cut-back so far this year, the United States Steel Company announced last week that it was to lay off 2,700 workers at its plant in Youngstown, Ohio. The company blamed the move on declining orders and said that the works would be re-opened "when orders improve and there is increased demand."
This particular cut-back follows smaller trimming in production by the United States' bigger steel companies. It underlines the sorry state of the industry at a time when the steel unions are only just beginning to negotiate new wage settlements.
Steel orders should be increasing on the eve of a possible strike (depending on the outcome of the wage settlement), but one company spokesman has said that the demand for steel is still dropping off and that the steel industry has never experienced such a decline before.
Some industries have begun stockpiling -- but many of these companies were anticipating a steel price rise which was due to come into effect at the end of August. The dangerous situation was highlighted by an increase in steel imports, resulting in a boom which is being compared with the 1968 steel turnover.