People in the Northern Panhandle are used to hearing aboutlayoffs in the steel industry. But with the current recession, fewpeople realize just how bad things have become.
Four years ago, Wheeling Pittsburgh Steel and Weirton Steelemployed more than 7,000.
Today, the names have changed, as has the number of steelworkers: ArcelorMittal Weirton employs 1,023; at Severstal Wheeling,it is 303.
Thousands of laid-off workers, including Dave Griffith, arewondering if they will ever be called back.
On a recent weekday, Griffith stopped by the local union hall inWeirton to check once again if there is any good news. Hisunemployment benefits run out in just a few weeks.
'The longest I was laid off before was 10 months, and so far ithas been 13,' Griffith said.
The job losses in manufacturing and steel are leading toincreased unemployment in the Upper Ohio Valley.
According to Workforce West Virginia, in the month of June theunemployment rate in Hancock County was 13 percent; in BrookeCounty, 12.5 percent; and in Ohio County, 9.4 percent. The nationalrate is 9.5 percent.
The Upper Ohio Valley is losing residents too. According to theU.S. Census Bureau, the area has lost more than 21,000 residentssince 2000. The city of Wheeling alone lost more than 2,500 people.
In the last year, more people in the region have turned to thegovernment for help. Since June 2008, the number of people receivingfood stamps has increased by 30 percent in Brooke County and 22percent in Hancock County.
The number of people receiving Medicaid is up about 22 percent inthe counties, according to Dan Hartwell with the Department ofHealth and Human Resources Bureau for Children and Families.
Griffith says he doesn't receive food stamps but he does scan thecomputer at Workforce West Virginia to look for jobs. As asteelworker, he was used to making $20, but now he has been forcedto lower his sights.
'You fill out a form when you are laid off and they say what isthe least amount of money you would take and I put down $15 dollarsan hour,' Griffith said.
'You know, if you put too much they say you won't find anythingpaying that.'
Long history of job loss
The U.S. steel industry has been shrinking for the past threedecades. The Northern Panhandle and the Upper Ohio Valley in generalare no exception.
In its heyday during the 1960s, Wheeling Pittsburgh Steelemployed more than 9,000 people at its Steubenville operationsalone, just one of several Wheeling Pitt plants in the region.
The former Weirton Steel employed more than 14,000 people it itsplant.
Although the recession is being blamed on the latest round oflayoffs, the steel industry has struggled for years. There are manyreasons: low steel prices, high wages, outdated equipment, dumpingby foreign steel producers, and the high cost of retiree healthcareand pensions.
The industry's problems have led to several restructurings andbuyouts at both Wheeling Pitt and Weirton Steel.
Wheeling Pitt has survived two bankruptcies and several rounds ofdownsizing.
In 2006, Wheeling Pitt was taken over by the Illinois steeldistributor Esmark. But the company's debt and other issues provedto be too much for Esmark to manage.
Within the past year, Severstal Wheeling has idled four plantsacross the Ohio River from the Northern Panhandle: Steubenville,Mingo Junction, Martins Ferry and Yorkville.
Bernie Ravasio has worked for Wheeling Pitt for 38 years. Now heis the contract coordinator for the United Steelworkers at theplant. He has never seen it this bad at the company.
'People are very concerned if and when plants will start up,'Ravasio said. 'I believe that there will be a Severstal Wheeling butthe number of employees will not be the same.'
The union is trying to negotiate a new contract but the joblosses and the recession are making it difficult. Severstal Wheelingemployees have been working on contract extensions since September2008.
Ravasio said there's a little bit of good news: Last week, 48workers at the Martins Ferry, Ohio, plant were called back to work.
Weirton Steel has also undergone ownership changes throughout itshistory. It was a division of National Steel and almost closed inthe early 1980s before then Gov. Jay Rockefeller and othersintervened and helped it become an employee owned company (ESOP) in1984. But the ESOP lacked the resources to run the company for thelong haul.
Despite these job cutbacks, not everybody has a gloomy outlook onthe future of steel in the Northern Panhandle.
Mark Glyptis, president of the United Steelworkers Local 2911 inWeirton, testified last month before the Congressional Steel Caucusin Washington. He spoke in favor of legislation that would requirecompanies that receive tax credits for renewable energy projectssuch as windmills to use American steel.
He said ArcelorMittal has invested $10 million in its tinoperations and plans to invest $40 million more.
'Our yields for tin plate are the best that we have ever had atthis point in time,' Glyptis said. 'We have a number of ideas andinvestments that will result in improved performance and we are veryoptimistic about our future.'
Glyptis and others are looking forward to the 100th anniversaryof Weirton Steel. A media tour is scheduled for Aug. 14. A picnicfor employees and their families is planned for Aug. 16.
Meanwhile, Severstal Wheeling is hoping to reopen some of theidled plants. But company officials say they don't know when theymay call people back to work or how many people will get their jobsback.
This story is part of a collaboration between West VirginiaPublic Broadcasting and the Sunday Gazette-Mail.
