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Posted March 28, 2008
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United Steelworkers

Arcelor Mittal: closure of Lachine wire mill

The Horror Story Continues

MONTREAL - Just two years after acquiring it, Arcelor Mittal recently announced the closure of its wire mill in Lachine. "Our horror story with this company continues. It's their approach that's so brutal. For Arcelor Mittal's senior management in London, the Web has become their preferred method of doing things. They have, in addition, not honoured the commitments they made when they bought the plant. It's very disappointing. We will be doing everything we can to help those of our members who are grappling with this fait accompli," declared Denis Trottier, USW/Syndicat des Metallos (FTQ) coordinator for the Saint-Jean region.

In continuing, he reminded his audience that the same approach had been adopted last year, on December 12, when the company announced the closure of the Contrecoeur steel plant. "We first heard about it through a news release distributed via the Internet," he said. "I'm shocked to see the brutal methods used by Arcelor Mittal to inform us of news that is so important, with such dramatic consequences for our members."

"It would appear that the Mittal plant in Lachine has been closed in order to consolidate its operations with the Saint-Patrick Mittal facility, but we are not aware of the existence of any recovery plan. We're operating in a fog. We have learned that the company has given itself until the end of this year to achieve a zero deficit and reposition itself on the steel wire market. We are concerned because Mittal has been asleep at the switch for the past two years. They let the situation deteriorate. We will be following them closely to ensure that they are proactive with the one open plant that remains," continued union staffer Frank Beaudin.

The two unionists are also asking questions about the Ontario plant, which does not appear to be under threat of closure at this time although it is posting losses that are bigger than those of the Quebec plant. "We note that the closure of the Contrecoeur steel mill was beneficial to Ontario, since operations at Dofasco were consolidated. Will this scenario repeat itself at this wire mill? We would very much like to know what Arcelor Mittal's long-term plans are for Quebec. The Sidbec acquisition has been a goldmine for the company, while also giving them an opportunity to position themselves on the North American market," they concluded.

The USW/Syndicat des Metallos (FTQ) will examine all possible avenues in working to help its members, particularly from the retirement standpoint and that of transfers to the company's other plants in Quebec.

One hundred twenty Steelworkers are employed at Mittal Lachine, while another 80 work at Mittal Saint-Patrick. Both facilities are wire mills.


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