U.S. Steel shuts down Stelco

[touch_of_magic]

HAMILTON — U.S. Steel Canada, formerly known as Stelco, is temporarily shutting down its Hamilton mill and closing most of its Lake Erie operations, affecting up to 2,100 jobs.

http://www.torontosun.com/news/torontoandgta/2009/03/03/8610086.html

 

[papasmerf]

That sucks

 

[Aardvark154]

Wow.

 

[Stoo]

Stelco has been dead for several years. This is just making it official, although they are calling it a "temporary" shutdown. It's my understanding that they haven't actually made any steel there in a couple of years. On the upside, plowing the mess into the harbour opens up some neat waterfront development potential!

All the same, terrible news for The Hammer... but certainly not unexpected. It was obvious a decade ago that poor management, hostile unions and foreign dumping would eventually put this great old company into the grave.

 

[Dark Chimera]

yup.

We allow foreign steel in that is subsidized by foreign governments and where labor is paid squat


a big part of the mess we are in

manufacturing is the backbone of any country

what are politicians thinking

 

[james t kirk]

US Steel paid a billion dollars for Stelco about a year and half ago. Not that that means anything I guess.

Growing up in the Hammer, Stelco becomes part of your personae, even if you didn't work there. "The Mill" as they used to call it. Many of my relatives would be rolling in their graves right now.

Hopefully when things pick up, this decision gets reversed, though deep down, I'm not so sure about it. Lake Erie might get reopened but Hilton Works will be a different story. It's old and it's a shadow of its former self. At one time, there were 10,000 guys working there. How times have changed.

This is going to hit Hamilton very very hard. It's very sad. Stelco never has been idled before. Not even in the Depression. This is what it means when Canadian companies sell out to Big Internationals.

 

[mmmburritos]

yup.

We allow foreign steel in that is subsidized by foreign governments and where labor is paid squat


a big part of the mess we are in

manufacturing is the backbone of any country

what are politicians thinking

Manufacturing "was" the backbone of this country. Our workers and their unions demand a higher standard of living than their global counterparts. Which has made us far less competitive. So unless we want to level the playing field and pay people 1/3 or less of their current wage, our time as a manufacturing economy has passed us by. It's just that we don't want to believe it to be true. Personally I think our economy is going through a maturation of sorts. It's time to start putting our workforce and money towards a modern, high technology economy. (robotics, high speed transport, green technologies etc...). The kind of stuff that an emerging economy like India, and to some extent China, just can't throw a bunch cheap labour at.

Oh and their labour is being paid squat right now.... much like ours was less than 100 years ago. In time that too will change.

IMHO

 

[new2game]

Sorry Burritos...

Manufacturing is still the backbone of a strong economy....the idea that this "knowledge based" economy is where our future lies is garbage.It's a bill of goods we have been sold because our government has screwed up big time. Today's kids, and their kids will be working these jobs for 30,000-40000/ yr max. The gap between the working class and those a the top will continue to widen. The economic power will shift to countries like China and India with our inability to produce anything ourselves. I've got less than 10 yrs left in my working career,and despite the rough times, I am quite set. but it is the next working generation that is going to get fucked over by this mentality...oh, and that fine idea of free trade that Lyin Brian came up with. You had to know that raising other economies up would eventually pull us down... I'd like to know what that bastard Mulroney has to say now about his fine idea...


N2G

 

[james t kirk]

Unfortunately, whether you like it or not, the world has changed. Free trade has been nothing but a boom to Canada.

Distances are becoming less and less of a governing factor now. The reality is that it is a world economy and yes, that can be frightening for many people as let's face it, it means the lowest rise up and the highest (us) fall down and everyone meets somewhere in the middle.

In order to continue to "win" in the new game, Canadians are going to have to become more productive, more efficient, and better educated. If people just want to sit on their asses and figure that that's good enough, then they are not going to succeed. It's not easy to get off your ass, take courses, go to school, learn something new. It's much easier to work your 8 hours, then go to the bar with your friends hoping that you will have that craddle to the grave security that your parents had. Not anymore.

With regard to Stelco, there are many "problems", not the least of which is that they supply steel for the auto industry and we all know where that is at these days.

Would Stelco still be up and running if it were Stelco and not part of US Steel? Absolutely. But it was the shareholders of Stelco who opted to sell out to US Steel for an inflated price. Greed got the better of them. Same goes for Inco, Alcan, and Dofasco.

The real tragedy here is that Inco, Alcan, and Dofasco didn't have what it took to be the guys doing the buying. On the other hand, Rio Tinto, Mittel, US Steel are so over extended, they just might find themselves broken up.

 

[Meister]

Manufacturing is still the backbone of a strong economy....the idea that this "knowledge based" economy is where our future lies is garbage.It's a bill of goods we have been sold because our government has screwed up big time. Today's kids, and their kids will be working these jobs for 30,000-40000/ yr max. The gap between the working class and those a the top will continue to widen. The economic power will shift to countries like China and India with our inability to produce anything ourselves. I've got less than 10 yrs left in my working career,and despite the rough times, I am quite set. but it is the next working generation that is going to get fucked over by this mentality...oh, and that fine idea of free trade that Lyin Brian came up with. You had to know that raising other economies up would eventually pull us down... I'd like to know what that bastard Mulroney has to say now about his fine idea...


N2G

Free Trade with the US was one of the best things that could have happened to Canadian manufacturing. What's pulling us down is manufacturing moving to Asia which is slowly turning us into a deficit nation. The US has been a deficit nation for quite a while now and we are just starting to become one now.

For anybody who thinks that we can just import, consume and get fat by selling each other useless insurance and investment papers wake up and smell the roses.

 

[spankingman]

The Z Line was built about 20 years ago for GM-Mitsubishi for the Auto Industry.Now that the Auto Industry is flatter than whale shit its no wonder.

It was often said when I worked there 28 years for every ONE STELCO worker there were 10 jobs on the outside ie: parts suppliers, transport drivers, Maint Co.
Serrvice Co., Food Co.etc. Even all the TIM HORTONS in the STELCO area (4) will be hurting BAD!

Its a definate blow to Hamilton and its economy. I only hope they can recover.Although they SAY its TEMPORARY I feel it is PERMANENT!!! at least in Hamilton. Nanticoke MAY survive Hilton Works I think is dead

Higher Canadian wages vs lower US wages is also likely a factor Although dont get me wrong I am NOT knocking the USWA Unions its well known we make more money up here in Canada than down in the US.


I wish them all the best of luck Blue collar and white collar people.

 

[onthebottom]

Manufacturing is still the backbone of a strong economy....the idea that this "knowledge based" economy is where our future lies is garbage.It's a bill of goods we have been sold because our government has screwed up big time. Today's kids, and their kids will be working these jobs for 30,000-40000/ yr max. The gap between the working class and those a the top will continue to widen. The economic power will shift to countries like China and India with our inability to produce anything ourselves. I've got less than 10 yrs left in my working career,and despite the rough times, I am quite set. but it is the next working generation that is going to get fucked over by this mentality...oh, and that fine idea of free trade that Lyin Brian came up with. You had to know that raising other economies up would eventually pull us down... I'd like to know what that bastard Mulroney has to say now about his fine idea...


N2G

Really, find a wealthy economy that's 50% manufacturing or more?

OTB

 

[Mencken]

yup.

We allow foreign steel in that is subsidized by foreign governments and where labor is paid squat


a big part of the mess we are in

manufacturing is the backbone of any country

what are politicians thinking

Bull

When you say "what are the politicians thinking" I assume you want our government to "do something" (like subsidize) so that our people can be paid 10 times what someone else will do the same job for...and taxpayers and/or consumers here will foot the bill.

 

[The Cunning Linguist]

Not surprised at all.

Where I work, we've had Stelco/US Steel on a credit hold for 2 years now.

 

[Keebler Elf]

Manufacturing is still the backbone of a strong economy....

No, sorry, it's not. No matter how much you want it to be.

We are, and have been, moving towards an increasingly knowledge and service-based economy for well over a decade. Primary and secondary (i.e., manufacturing) are on the way out. They'll never go away completely but if you think that's the future of Canada you need to go educate yourself.

The other posters have it right. We need to educate and train our workforce to be able to perform highly skilled jobs. Not McManufacturing, which is easily offshored.

 

[new2game]

No Elf...

No, sorry, it's not. No matter how much you want it to be.

We are, and have been, moving towards an increasingly knowledge and service-based economy for well over a decade. Primary and secondary (i.e., manufacturing) are on the way out. They'll never go away completely but if you think that's the future of Canada you need to go educate yourself.

The other posters have it right. We need to educate and train our workforce to be able to perform highly skilled jobs. Not McManufacturing, which is easily offshored.

Believe me...we will be doing McServicing...show me where these jobs that are going to replace the high paying Auto/Steel jobs are. You know what jobs we are getting??....the Global Sutherlands of the world...jobs at 10-12 hr...


And OTB??....the manufacturing industry does not have to comprise 50% of the economy..when it is healthy and vibrant, the spinoff effects carry the economy..when the "overpaid" auto workers that you all whine about buy products and services, the whole economy benefits.

N2G

 

[Meister]

No, sorry, it's not. No matter how much you want it to be.

We are, and have been, moving towards an increasingly knowledge and service-based economy for well over a decade. Primary and secondary (i.e., manufacturing) are on the way out. They'll never go away completely but if you think that's the future of Canada you need to go educate yourself.

The other posters have it right. We need to educate and train our workforce to be able to perform highly skilled jobs. Not McManufacturing, which is easily offshored.

Highly skilled jobs are good, we all love to talk about robotics, automation software... But, think about it, who are the customers that need robotics, automation, programming etc...., it's the companies that produce something. It's not the service companies.

And, if you think that you can sell your high tech innovation to Asia where they need it you will be selling a staggering quantity of 1. The second one will be copied in China.

 

[chiller_boy]

Manufacturing "was" the backbone of this country. Our workers and their unions demand a higher standard of living than their global counterparts. Which has made us far less competitive. So unless we want to level the playing field and pay people 1/3 or less of their current wage, our time as a manufacturing economy has passed us by. It's just that we don't want to believe it to be true. Personally I think our economy is going through a maturation of sorts. It's time to start putting our workforce and money towards a modern, high technology economy. (robotics, high speed transport, green technologies etc...). The kind of stuff that an emerging economy like India, and to some extent China, just can't throw a bunch cheap labour at.

Oh and their labour is being paid squat right now.... much like ours was less than 100 years ago. In time that too will change.

IMHO

There was a bit on TV that relates to your point. A steel company in the Chicago area had closed and it was being reopened with a new mission - producing wind ebnergy turbines. One of the new workers had actually worked for the steel company before it was shuttered and told stories of the devastation the closing precipitated. Sounds like a good story -

The only problem is that the steel company employed 6000 workers and the wind turbine factory employs about 180.

 

[Liber Pater]

I grew up in Hamilton and am very familiar with the Steel Company.

I am afraid it won't be opening again.

Just my two cents...