Granite City Steel's indefinite idling might lead to over a thousand layoffs. The Illinois Department of Labor probes U.S. Steel's adherence to labor laws, issuing a subpoena over compliance with the Worker Adjustment and Restraining Notification Act. United Steelworkers claim the company evaded notice requirements during temporary layoffs, prompting the investigation.
Granite City Steel faces a potential crisis as the Illinois Department of Labor initiates an investigation into U.S. Steel's adherence to labor laws. The company's actions regarding the temporary layoffs in October have come under scrutiny, with claims of circumventing the WARN Act's notice requirements.
The WARN Act mandates that companies with 75 or more full-time workers must provide a 60-day advance notice of plant closings or mass layoffs. United Steelworkers' Dan Simmons alleges that U.S. Steel evaded this obligation citing the temporary nature of the layoffs.
Illinois Congresswoman Nikki Budzinski has advocated for the state's labor department to conduct a thorough investigation into the recent layoffs at Granite City Works. In a tweet, she stressed the importance of ensuring compliance with state and federal labor laws to safeguard employees' rights.
The potential layoffs, affecting over a thousand workers, include the 400 already laid off temporarily in October, along with an additional 600. The Illinois Department of Labor asserts that if labor laws were violated, affected workers are entitled to back pay, benefits for up to 60 days, and potential penalties against the steel plant.
Despite the looming downsizing, Simmons highlights the strong demand for specific steel grades produced solely by their facility. This unique capability underscores the importance of retaining skilled workers and maintaining production capabilities.
The investigation into Granite City Steel's potential layoffs signals the critical need for adherence to labor laws. Amidst concerns of evading notice requirements, ensuring workers' rights and adherence to labor laws remains pivotal in protecting employee interests.