By Doug Moore
ST. LOUIS POST-DISPATCH
12/21/2008
GRANITE CITY — The heart of this blue-collar town always has been industry — the big, blustery kind with smokestacks that monopolize the skyline and make even sunny days look gray.
Granite City Works, the city's largest employer, has helped keep the town alive. It seems that just about everyone here either works at the steel plant or knows someone who does.
Or did.
This month, U.S. Steel, the parent company of Granite City Works, announced it would temporarily idle the plant and its 2,400 employees. When — or if — it will call employees back is unknown.
The layoffs came in waves, 300 to 400 at a time. Last week, as the last steel order rolled out, the plant operations came to a halt.
The majority of workers —1,400 of them —belong to United Steelworkers Local 1899. On Thursday, about 600 gathered at the union hall for their holiday party.
"Putting this on is the easy part," said Russ Saltsgaver, president of the local, a few hours before the party in the third-floor ballroom. "The tough part is waiting three to four months to see how the economy goes."
Construction and auto-industry slowdowns have taken their toll on Granite City Works and other steel mills around the country. U.S. Steel also shut down plants in Minnesota and Michigan.
The company said it cannot predict when the plants would reopen or at what level they might operate again.
"As our customers' demand strengthens, we will assess which facilities can effectively meet those needs and make the necessary adjustments to our operations," said public affairs manager Courtney A. Boone, reiterating a company statement when the layoffs were announced three weeks ago.
Saltsgaver said the steel mill and the companies that provide supplies or services to it represent a $2 billion annual payroll for southwestern Illinois, a number that regional economic leaders said was about right. The plant is the largest manufacturer and fifth-largest employer in the Metro East area.
The 130-year-old plant is a behemoth that spreads over several city blocks. Pipes linking one blue building to another stretch above major streets. The metallic smell from the plant wafts over a downtown filled with stores, cafes and gas stations that bank on the steel mill's operation.
Larry Petri, owner of Petri Cafe and Catering Service, says he's already feeling the pinch of the plant shutdown. On Fridays, he could expect several delivery orders from the plant, ranging from $20 to $50 each.
Last Friday, no calls came from the plant.
Petri Cafe, in business since 1946, supplied the homemade rope sausage for the steelworkers' holiday party. The Italian beef, fried chicken and cole slaw also came from locally owned restaurants.
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