National news sources reported Wednesday that on Friday, Gerdau plans to lay off about 31 steel workers from its St. Paul, Minnesota steel mill that is currently undergoing a $50 million renovation. A company spokesman was quoted as saying the decision was a result of market conditions and once the mill is modernized, St. Paul won't have to face choices such as laying off employees in the future. The company will still employ roughly 340 workers after the layoff.
According to local union president Chuck Nippoldt, in October of last year, the mill cut down its shifts but hoped that activity levels would pick up at the beginning of the year, but that expectation did not materialize.