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Poor economy means cuts to steelmaker's work force

AK has been balancing staff levels at all its plants since November.

By Jessica Heffner

Staff Writer

Friday, January 09, 2009

WEST CHESTER TWP. — Plagued by decreasing demand for its products, AK Steel Corp. has been forced to make major cuts to its work force within recent months.

The local steelmaker just announced it will indefinitely lay off up to 45 workers at its Middletown Works facility within the next several weeks. In addition, effective immediately, the company will lay off some of its salaried workers at all of its locations. AK has operations located in Ohio, Indiana, Kentucky and Pennsylvania.

"It's certainly a sign of the times and it's unfortunate," said Middletown Mayor Larry Mulligan Jr. "It's not a surprise given the current trends of the local, national and global economy."

The steelmaker has been balancing staff levels due to decreasing orders since mid-November. About 1,000 workers were laid off at Ashland Works in Kentucky and Mansfield Works in Ohio.

About four dozen union workers at the AK Steel's plant in Ashland, Ky., were called back to work Monday, Jan. 5, to inspect the facility's blast furnace. More than 600 employees have been idled there since November, Ashland union officials said.

Company spokesman Alan McCoy said the company is considering "taking advantage of the downturn" to idle its Middletown blast furnace for maintenance, which could mean further job cuts locally. It would then restart its Ashland blast furnace and possibly recall more workers for slab work there during that time, he said.

"All layoffs have to do with the severe economic downturn," McCoy said.

The company has been idling workers and reducing schedules of workers at virtually all of its facilities since the end of the year, McCoy said. It also implemented a 5 percent pay reduction beginning Jan. 1 for all salaried employees; the cuts included James Wainscott, company president, chairman and chief executive officer.

Mulligan said Middletown "needs to be prepared for more adverse events and be prepared for more job losses."

"It's a business decision," he said. "Obviously, they need to do that to stay competitive. It's a necessary but unfortunate circumstance."

Mulligan said Thursday's announcements along with cuts in the state's budget could have an impact on Middletown's city budget, but the city does have contingency plans ready if necessary and that it was "all the more reason to watch every dollar coming in and out of the city.

"It's definitely not good news and all we can do is look for the economy to rebound soon," Mulligan said.

Staff Writer Ed Richter contributed to this report.

Contact this reporter at (513) 705-2843 or jheffner@coxohio.com.

Comment: What will the layoffs mean for Middletown?

Comments

By X-Factoryworker

February 11, 2009 11:20 AM | Link to this

Unions …. Help uneducated people make $40,000 to $65,000 with alot of overtime.I’m not talking about a few hours…lol it’s about 20-30 wow now thats a life.The problem is a uneducated work force. Their is nothing worse than working next to a fool that has no skills and can’t even read a tape.And when its time to layoff you get to go bc his hire date was one day before you, Thanks Union….weeeee With no union the best would stay and the worthless would go.

By Jock

January 23, 2009 10:39 AM | Link to this

I remember when ARMCO was a great company and a great place to work. They took care of the employees, like family. That is gone, long gone. Only the bottom line matters to AK. That is the way it is, and the bottom line is not looking so good right now. So bye, bye AK Steel and bye, bye Middletown. It’s time for all of you left in Mentaltown to move on. Pack up before they pack up is my advice.

By MiddletownSux

January 19, 2009 6:02 PM | Link to this

Middletown is such a low life town! AK Steel is even worse! It makes me SICK to think of all the “upper” management that are still there who have sexually harrassed workers and Human resources who did NOTHING about it! I hope AK goes DOWN and brings all the people who think they are untouchable DOWN with it! So HAPPY to be OUT OF MIDDLETOWN and the state of Ohio at that!

By No loyalty

January 14, 2009 11:08 PM | Link to this

AK has not shown loyalty to their workers, Middletown, or the environment. I hope they fail—goodbye AK Steel. Thanks for all your pollution and dishonesty. You will not be missed.

By salaried man

January 11, 2009 9:21 AM | Link to this

The executive managment is the worst I have ever seen. Cutting peoples pay and benefits while they are still taking in millions of dollars. Look at what Wainscott made during 2008. Its sick, there is no loyalty to the salaried group like there was. Wainscott and his cronies are no better than the AIG, Merrill Lynch people that should be in prison(I would prefer them to be sentenced in prison to some third world country). Salaried group has had their pay cut, benefits cut, no overtime pay.

By Rollie

January 10, 2009 11:39 AM | Link to this

I got out of Middletown, a long time ago, in 1983, I left and moved out west (CA), I now live in Las Vegas, NV, going on 14 years now, and things are good, we have unions here too, and we are getting hit with layoffs, but there are still jobs here, if you look. The new “City Center” will be opening in a year, and are going to hire 12,000 people, so go online and apply now, and get out of town, while you can, Middletown is died, and dyeing. Why would someone stay where thing are only going to get worst, if you watch the news, they are saying, it’s going to take 3 to 5 years before thing get better, can you wait that long? What happens if AK shuts down???? People are still coming to Vegas, and spending money, (overseas) people, because of are dollar. I was working 40 hours a week, and just last week, was cut down to, 32 hours a week, to keep jobs. Maybe AK, people should do the same, cut hours, and keep more people on the job. 32 hours is better then NO HOURS……………… Middletown, was on the top 10, as the fasters dyeing towns in America, if something is dyeing, let it die, and move on with your life, bit*hing is not going put food on the table or get you to far….

P.S. I will never move back to Middletown, and I have family there.

By middie killa

January 10, 2009 9:05 AM | Link to this

so union.. go ahead and say ur there to stay but just remember …. DEATH COMES A CALLIN FOR ARMCO…. ur the last big staple in middletown and its not long before it fails and the city is a slum. people ned to get out while they can before it city fails. and u union workers will be out there makin more crime rates sore just to make a few bucks.. END RANT

By middie killa

January 10, 2009 8:59 AM | Link to this

all the crime rate is stupid high now, and people to blame. ALL THE LIL “GANGSTER” MTV GENERATION… all these kids care bout it drugs.. and for u AK union workers.. U MAKE ME LAUGH! u all b***h bout sayin AK needs u but i sure as hell don’t think so cause i remember laughin at u guys when the scabs were comin in and u guys were standing in ur lil “HUTS” that in the time it took u to build those things u could have found another job why ur familys sat at home. UR JUST WEAK WITH UR ARGUEMENT

By scabby

January 10, 2009 8:54 AM | Link to this

Everyone needs to look out for themselves…look what the unions did the US auto industry. They killed it.

By scabby

January 10, 2009 8:53 AM | Link to this

One would think that after the example that was set in mansfield that you union guys would learn your lesson but no. You need to come down off of your high horses, you are all replaceable no matter what you think.

By middie killa

January 10, 2009 8:52 AM | Link to this

MIDDLETOWN IS DEAD… the downtown part went down years ago when they tore down the mall just to make a street cause “we need to give middletown a face lift!” well that backfired… all they did was make the town more shitty… almost everything is shut down in midletown.. won’t be long before middletown looks like a ghost town… boarded up houses… boarded up stores… and the stuff they do tey to put together in middletown such as MIDFEST is now just a big joke compared to years ago (cont.)

By concerned worker

January 9, 2009 11:57 PM | Link to this

I have been at the mill for 16 months now. I worked an average of 72 hours a week just too feed my family because I was at a 70% wage. There was days I had no sleep but I still came too work, thinking there would be a future at AK for me and my family. But now it seems to not go so far because of all the older workers being so pissed off at scabs, they are willing to stand by and watch the new hires get screwed just trying to get back at the replacement workers…But you know they are favored!

By SCABS SUCK

January 9, 2009 11:50 PM | Link to this

I am a new hire that works beside replacements and senior men. I am required to do the same job as both, but yet to the senior guys I am looked at as a scab. I done the right thing by waiting to get my job the right way! At any time I could have drove past the line and made lots of money. Now with the layoff, your happy and say “Paybacks are a b***h” but I will be the one layed off and your scab buddy will be working next to you. Please help new hires you was new too! but with full pay!

By mainstreet

January 9, 2009 11:38 PM | Link to this

Get out if you can, the town is dying. I was raise on sherman st. After graduation I went to work in a box factory. The best thing I did was leave Middletown. I took a trip to Middletown a few weeks ago. I could not believe my eyes, the boarded up houses, the new mall is half way shut down. There are towns with growth and people in Middletown are not stupid, just afraid of new beginning. I am glad I moved. Great memories of Middletown,but in 20 yrs.everything has changed.

By yes thats right

January 9, 2009 8:41 PM | Link to this

It does not matter if ak is selling steel or not if they dont get the new coke plant

By scabby

January 9, 2009 8:16 PM | Link to this

All you union guys just need to remember to stick with your union brother. When they start the layoffs, you should all just get up and walk out. But dont worry, ill be there in less than 24 hours to take your job again :)

By Ex Ohioan

January 9, 2009 6:48 PM | Link to this

I bet Chinese Armco is doing very well. Don’t worry about the scabs,worry about American jobs continuing to go overseas. EVERYONE NEEDS TO START BUYING ONLY AMERICAN MADE PRODUCTS. Otherwise, eventually we will all be doomed to the unemployment line.

By Earl

January 9, 2009 6:24 PM | Link to this

I don’t feel sorry for them. The mid management people. You deal with venders outside of town, even when the ones here offer you substantial savings you are to busy to bother. I hope some of the people in purchasing are the first to go, maybe they will remember the savings people have tried to bring to them. Same with the workers, I don’t feel sorry for you, you are just as bad. I know I am not going to help them. I did during the lock-out and got slapped in the face when they came back.

By ann

January 9, 2009 4:14 PM | Link to this

My husband hasn’t been working at AK very long. He really likes his job it is unfortunate that he might get laid off. I feel sorry for everyone involved. I think that the upper management needs to take a cut too. He will gladly take the pay cut so he won’t get laid off.

By Deez Nuts

January 9, 2009 3:55 PM | Link to this

Is it your right to keep a job you’re incapable of dob/c you’re in the union? Read the writing on the wall. If they have to hire outside, it’s b/c 1. too many dumb people in the union 2. The union wages / benefits don’t make any sense for this type of job 3. Your union is an outdated after-thought that they are phasing out. It doesn’t mean “job for life” or “you can’t fire me no matter what I do”. Have some pride, and show you want to be there, not pretend you’re off the hook b/c you’re union.

By Phil Man

January 9, 2009 3:51 PM | Link to this

Is it some divine thing to be a union member or something? What’s wrong with people trying to get a job? ShoWe all have to meet basic needs, such as food, shelter, taking care of families. So if someone started there as a non-union member, who cares? They’re still doing the same thing as you. They just don’t need to have the union (momma’s breast), helping them do every little thing and protecting them from doing any actual work. Talking about being in the union as some elite thing is laughable.

By Jack

January 9, 2009 1:26 PM | Link to this

You;re right, the lockout is in the past and the scabs are now union members. But again a scab will always be a scab. Some where on this day there is a worthless piece of trash (scab) stealing someone’s job. Scabs go into the banks and other places bragging about it all the time, that is when scabs show their real colors. Your scabbing will all come back to bite you in the a*s.

By ridingharley4

January 9, 2009 12:43 PM | Link to this

And if I can recall, some of you “loyal AK employees” who had less service back in 2004 also saw the “bread lines.” You people really need to grow up and worry about your own lives. Just more toilet talk, I guess.

By butch

January 9, 2009 12:41 PM | Link to this

How can a union company layoff union members and keep replacement or contract workes doing union jobs??

By ridingharley4

January 9, 2009 12:39 PM | Link to this

Can’t you people find anything else to cry about? And what does the scabs have anything to do with the layoffs? Remember, they aren’t scabs anymore.. Let it go people! The lockout was in the PAST so leave it there. Living out of town, I realize more and more everyday that Middletown citizens are so arrogant and full of themselves, so no wonder the town is going down the toilet…

By Jean

January 9, 2009 12:36 PM | Link to this

A scab is just that “A SCAB” they are worthless. What goes around comes around and it’s your time. People on the inside of that plant really know just how bad your work is. It’s time for YOU to hit the bread lines.

By deeon

January 9, 2009 11:26 AM | Link to this

I have not met a smart scab yet. This comment confirms you are all as stupid as everyone thinks you are. Rot in hell you giant piece of dog crap.

By VietVet

January 9, 2009 11:20 AM | Link to this

How many members of upper management (with the large salaries) will take the hit with these cuts?Every time there is a layoff,the workers are mentioned,the middle and lower management numbers are mentioned but we rarely hear about any upper managers taking the hit.How about some VP’s/Senior Managers biting the dust on this.That’s where the big money savings are.Cut an upper level manager’s job and save 20 workers if cost is a primary issue.By the way, I don’t work there and I’m not in the union.

By Ray

January 9, 2009 11:16 AM | Link to this

When the scabs were there they wanted to keep us not lay us off.

By Ray

January 9, 2009 11:16 AM | Link to this

When the scabs were there they wanted to keep us not lay us off.

By Ray

January 9, 2009 11:16 AM | Link to this

When the scabs were there they wanted to keep us not lay us off.

By Ray

January 9, 2009 11:16 AM | Link to this

When the scabs were there they wanted to keep us not lay us off.

By Ray

January 9, 2009 11:16 AM | Link to this

When the scabs were there they wanted to keep us not lay us off.

By Ray

January 9, 2009 11:14 AM | Link to this

When the scabs were there they wanted to keep us not lay us off.

By Ray

January 9, 2009 11:14 AM | Link to this

When the scabs were there they wanted to keep us not lay us off.

By Wrong

January 9, 2009 10:48 AM | Link to this

Janine, you could not be more wrong. If the demand for steel is down, why in the world would we need a coke plant? We do NOT need the extra pollution.

By Janine

January 9, 2009 10:01 AM | Link to this

It should be obvious to everyone that now more than ever we need the coke plant… and those 70 jobs

By Tracey

January 9, 2009 9:39 AM | Link to this

I think it is sad. Middletown, like many cities, is suffering and that will just add to it.

By Phil Man

January 9, 2009 9:26 AM | Link to this

Stick a fork in ‘em….

By James

January 9, 2009 9:19 AM | Link to this

scabs b gone

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