Economic Crisis Hits Home

And just like that, the steel industry is hurting, all because of the worldwide encomic crisis. It's not only affecting us here in the United States but all across the world. China, which was undergoing it's own industial revolution, has cut back on how much steel it buys. People aren't buying cars as often, which is slowing down the need for steel to produce vehicles. Need I tell you how bad the three major automakers in the United States are doing? I am sure you have been hearing all about that in the news as of late. GM is on the verge of bankruptcy - once one of America's finest corporations. My great uncle who worked for GM in a management position is losing his medical benefits at the end of the year in a cost cutting move. Benefits he was promised to have during his lifetime at the time of his retirement are now yanked away. But we are in extraordinary times - never in America have we seen anything like this. It's affecting millions of Americans and now it's even affecting the steel industry pretty hard.

The last time I brought up the steel industry a few months back, times were good in the steel industry. In fact, a new contract was negotiated for our unions here in Michigan and in Minnesota. Not only for our mines, but new contracts were ratified for other mines and steel mills across the country this year - well before the economic crisis hit. Times were good; we were producing a maximum amount of product - even increasing production where we could. There were plans in the works at my respective plant to reconvert a lot of old equipment into modern equipment. Well, a lot of those plans have been halted for the forseeable future. And what's worse, as many as 350 people may end up being laid off at the start of the year. Many of these people are honest, hard workers who need good paying jobs like the mine offers. A lot have been recently hired within the last year or two and now could be without a job for the time being. I really feel bad for those employees who have recently been hired and left jobs, only to find themselves possibly laid off to start next year. It's amazing how quickly things can turn around.

As of now, I am not on the layoff list. I have worked long enough there and have enough seniority to the point that my job is safe. Also the position I hold at the mine is a lot safer than a lot of others there, so that doesn't hurt, either. But if things get to dire straits, I could be bumped out of my job by people who hold more seniority than me and I, too, could wind up being laid off. You see, production has been scaled way back to the point where all of these employees are no longer needed. At the start of next year, we're only expected to be running once section of the plant compared to the four we currently run. 2009 is one big question mark as far as the mine where I work is concerned. If things get bad enough, the whole place could be idled for an unlimited amount of time. That is the scary thing about this whole situation; how long is it going to last and will things ever be the same again?

I really feel bad for those individuals who are being laid off. There are a lot of good people out there who are getting a raw deal. A lot of people depend on a job like this and to not have it to start 2009 would be a major blow for them. Sure, there's unemployment but that eventually runs out. You just have to hope that the steel industry makes a big turn around and the world economy makes an up-turn. If not, we may be in for a long downward trend in the steel industry, that up until a month or two ago, things couldn't have been better. Like I said, how quickly things change.