Today we read in WSJ that Arcelor headquarters were attacked by workers, who want to do their job and earn a living for themselves and support their families. Nothing wrong with that. However, any business can not continue to operate if there is no demand or market price simply does not let the economics work. Unless of course you are GM or Chrysler, at which the President can throw money, bend the bankruptcy code and make the Unions the majority owners. Auto companies are no more running for its shareholders and other stakeholders but solely for their employees.
I digress. Is this sign of things to come? Increasing social unrest? Increased union abuses? More industrial bailouts? Isn't steel industry important to National Security? I am sure someone in Washington DC will think of a reason why its important.
- Although ArcelorMittal has already cut production in half and shut down plants and blast furnaces around the world -- including some iron ore operations idled Tuesday in Indiana -- it still makes more steel than customers need and expects global steel demand to sink by up to 20% this year. (So steel companies are still cutting production, where are the green shoots?)
- On Tuesday, an estimated 1,000 steelworkers from the company's plants in France and Belgium attacked the company's headquarters in Luxembourg, setting off smoke bombs and smashing windows in an effort to disrupt an annual shareholder meeting. (And this is developed world!)
- Mr. Mittal said that he would shift steel production from higher cost plants to more efficient steelmaking plants, but declined to say where or when.
- Duane Calbow, vice president of the local 7367 United Steelworkers, said that Chicago workers are frustrated because the company doesn't seem interested in running the plant or trying to sell the existing operations or find other uses for the facility so that workers can get back on the job. "Our message was run it or sell it," said Mr. Calbow. More than 245 union employees were laid off. (Would a local deli continue to be in business if they cannt get buyer for their $4 sandwich? Why is a steel mill or an automoblie company any different? Besides who will buy a steel mill in this enviornment)
This entry was posted
on 2009/05/12
at Tuesday, May 12, 2009
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Arcelor Mittal,
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