Likely Out of Work for 6-months

United States Steel Corporation (US Steel) intends to lay off fewer than 200 workers at the corporation’s Great Lakes, Michigan, plant. They are suspending production for at least six months. An August 5, Worker Adjustment and Retraining Notification (WARN) filing indicated the move was taken to better align steel output with global demand. The filing coincides with the company’s June announcement.

Reuter’s and other news organizations headlines read: “U.S. Steel plans to lay off hundreds of workers in Michigan.”

US Steel spokeswoman Meghan Cox said “The layoff notices were sent to less than 200 employees and will begin taking effect August 4. As we indicated in communications issued June 18.” US Steel will also idle a blast furnace at its Gary Works in Indiana, as well as a blast furnace in Europe until global market demand rebounds.

There was confusion around the announcement when a Union Steelworkers official said layoffs were also planned for the Gary Works plant. A US Steel spokeswoman clarified saying the company “currently” doesn’t expect “any employee level changes” at Gary Works, only at Great Lakes. The confusion appears minor but has important financial and political implications.

US Steel: Money, Tariffs and Politics

The Gary Works plant is of particular concern since the city of Gary and the state of Indiana offered U.S. Steel a $47 million tax break package to help it invest $750 million in modernizing the 114-year old plant, its largest North American. The state’s tax credits and worker training grants were tied to the condition that U.S. Steel retain at least 3,875 jobs at Gary Works. U S Steel is expected to comply.

Domestic steel prices rose immediately after President Trump imposed a 25 percent tariff on steel imports in March, 2018. The tariffs were designed to protect U.S. steel workers and manufacturers from subsidized foreign steel. Since then, however, demand for auto and farm machinery has declined. Hot-rolled coil prices have fallen almost 37% since 2018 and U.S. Steel’s stock price dropped 73% since March 2018.

Reuter’s and other news organizations headlines read: “U.S. Steel plans to lay off hundreds of workers in Michigan.” Social media accounts were quick to point out that, while the headlines implied a much larger number, the actual number (under 200) did not factually rise to the plural. Several accounts accused these outlets of political bias in their reporting.