A recent slowdown in mining activities will prompt ME Global of Gary New Duluth to lay off 39 workers a week from today. The foundry employs 103 people.

Mr Bill Grau plant manager in a statement said that “The layoffs are a result of a continued reduction in demand for the iron ore business. We continue to monitor our customer base and will make production adjustments to support our customer backlog.”

According to Mr Bruce Lotti president of United Steelworkers Local 1028, workers at the foundry already had seen their hours reduced by 20% from 40 hours per week to 32. When the layoffs take effect, the employees who remain will return to a 40 hour week.

Mr Lotti said that “In terms of feeling the effects of a mining downturn. It seems like we’re usually the last ones in and the last ones out.”

Mr Lotti said that although the duration of the layoff remains uncertain he and others are hopeful workers could be recalled by this fall.

The foundry had been preparing to boost its daily production from 100 to 120 tons of steel when business began to fall off, according to Lotti. After the pending round of layoffs, he expects the plant’s production will drop to about 60 tons per day.

(Sourced from duluthnewstribune)