ArcelorMittal's US rod mill to remain closed

ArcelorMittal's Georgetown, South Carolina wire rod mill will remain closed, according to a statement issued by the company Thursday.

After Georgetown workers voted Wednesday to reject the company's latest offer to reopen the mill if employees approved a pay cut and reduced workweek, the company issued the following statement:

“We are disappointed with the outcome of yesterday's vote, which was designed to put the plant on a more competitive footing. The facility will remain closed with no plans to reopen as we continue to evaluate our options given the current labor situation and market conditions.”

Georgetown's closure means the permanent layoff of about 245 employees, many of which were nearing retirement age. However, as per their latest labor contract, these employees will continue to receive supplemental pay, which equals 60 to 80 percent of base pay, depending on years of service, for up to two years. If the union would have approved the deal, employees would have switched to a 32-hour workweek and taken a pay cut of $3.65 per hour during quarters in which the mill had orders of less than 50,000 tons.