Steelworkers Recalled To Sparrows Point

As a result of an agreement reached between Severstal North America and The Renco Group, the New York-based investment company in the midst of purchasing the steel mill at Sparrows Point and two other Severstal mills, Sparrows Point steelworkers will begin being recalled to prepare for the restart of the primary operations at the plant.

The first employees recalled will be those required to return “L” blast furnace, steelmaking, and the hot strip mill to operating status. Employees will return to work in phases over the next several weeks, according to a letter today to Sparrows Point employees signed by John Cirri, president of United Steelworkers Local 9477, and David A. Howard, vice president and general manager for Severstal at the Sparrows Point mill.

“The timeline to the restart of 'L' blast furnace is being finalized as a result of this announcement, and further details regarding the expected start date will be communicated at a later date,” said Cirri and Howard’s letter to Sparrows Point employees. “However, we expect that 'L' furnace and steelmaking will return to service in May 2011 and the hot strip mill will return to service shortly thereafter.”

The “L” blast furnace and primary operations at Sparrows Point have been idle since the summer. Currently, 850 steelworkers are laid off from the mill.

“The news we have waited for,” Cirri wrote union members in a separate communication today. He described the impending finalization of the sale and the restart as “a new beginning.”

At this point, the scheduled sale of Sparrows Point, Warren, Ohio and Wheeling, WV, mills, along with the Wheeling Corrugating Company and the 50 percent purchases of Mountain State Carbon and Ohio Coatings Company, is expected to be completed by the end of March 2011, according to the joint letter signed by Cirri and Howard.

After eight months of a day-to-day blurred vision, our future begins to come into focus,” Cirri wrote to union members. “With today’s announcement to immediately recall certain employees and begin preparations for the restart of the primary operations comes both joy and a sigh of relief, because today starts a new day for all Sparrows Point employees and our plant. Our members have endured many months of frustration, uncertainty, anxiety and in many cases a financial hardship for them and their families.”

The Sparrows Point has had five different owners over the last eight years. Cirri said the historic plant, once the largest producer of steel in the world, has been given the opportunity to again take its rightful place as an American premier steel producing plant.

The Renco Group previously said its subsidiary, RG Steel, which will manage steel operations, will locate their headquarters at Sparrows Point.

“We are very fortunate to be given another chance, and there are many things that are beyond our control,” Cirri wrote to local steelworker union members, “but for those things that are, we must seize the moment and have power over our destiny to protect and pave the way for a secure future.”

Cirri added that there will be new challenges to work safely and more efficiently so the new company can become profitable.

“In doing so,” he wrote, “we all profit and can obtain much-needed capital so that will secure a viable long term future for our jobs, our plant and our communities.”

Cirri said the International United Steelworkers union in Pittsburgh is preparing the union contract summaries and ballots that will be mailed in the next few weeks. 

Chief USW negotiator Dave McCall will hold informational meetings once summaries and ballots have been received, Cirri said.

Baltimore County Executive Kevin Kamenetz issued the following statement in reaction to today's announcement that the Renco Group, Inc. has notified employees at Sparrows Point that many of them will be returning to work.

"Today's announcement that many of the steelworkers at Sparrows Point will be returning to work is great news for the hard working employees at the plant," Kamenetz said. "I applaud the Renco Group for taking this immediate action, and I look forward to the day when the mill is running at full capacity and all 1,000 workers are back where they belong – making steel in America."