GRANITE CITY, Ill. – Up to a thousand employees at U.S. Steel’s Granite City Works plant will be out of a job after the holidays, as the steel producer announced Tuesday that it would idle the facility indefinitely.
In a statement, a spokesperson for U.S. Steel said the Granite City mill is being idled “in order to help ensure melt capacity is balanced with our order book” and will meet demand by leveraging its active iron and steelmaking plants.
Employees at the Granite City facility who will be affected have been notified of these changes, according to the spokesperson. The layoffs will occur in January 2024.
The move comes two months after U.S. Steel temporarily idled furnace B in a move the company described as “risk mitigation” in response to the now-resolved UAW strike.
The affected workers include 400 who have been on temporary layoff since Oct. 1, plus an additional 600. United Steelworkers Local 1899 will host an informational meeting for the workers who have lost their jobs.
Meanwhile, shares of U.S. Steel are up more than 53% over the past five years as the company solicits potential buyers.
Illinois State Representative Amy Elik (R-Alton) said she’s “disgusted and saddened” by Tuesday’s announcement.
“Granite City employees and their families have provided loyal, skilled labor to the steel industry for decades, and U.S. Steel is pulling the rug out from under them,” she said in a statement. “U.S. Steel should be doing everything it can to keep the Granite City steel mill operating at capacity, and I don’t see the company making that effort.”
Elik has advised all affected employees to contact the Southwestern Illinois WorkNet Center in Wood River for job search help or job training opportunities.
Elik’s colleagues in the region, State Reps. Jay Hoffman (D-Swansea) and Katie Stuart (D-Edwardsville), expressed disappointment over the layoffs and support for the workforce.
“The people of this community have given a lot over the years in support of this plant, and our significant local resources, infrastructure, and workforce should be encouraging further investment, not abandonment,” Hoffman said. “A lot of families are going to be hurt by this.”
Stuart said the community needs to stand together and officials need to prioritize the affected families in the short and long term.
“I look forward to doing what it takes to welcome businesses that believe in fair play and value people,” she said. “In the meantime, I’m standing by to assist affected workers in any way that I can, including by prioritizing career training and other resources.”
