BURNS HARBOR | PSC Metals Inc.'s contract for scrap metal processing work at ArcelorMittal's Burns Harbor mill ends in October, also ending employment for 108 of the company's local workers, the company has told the state.

But one PSC official believes jobs may await the workers who are to be laid off.

PSC filed a notice with the state on Aug. 28, saying it would lay off the workers Oct. 14.

Ohio-based PSC currently processes scrap metal for ArcelorMittal's Burns Harbor plant but recently lost its bid to renew the contract, said Jim Skinner, business agent for the Gary-based International Brotherhood of Teamsters Local 142, which represents PSC workers at the Burns Harbor plant.

"Mittal put the work up for bid, and PSC didn't get it," Skinner said Tuesday.

The contract was awarded to Scrap Metal Services Co., of Burnham. No one from SMS could be reached by The Times for comment Tuesday as of press time.

Linda Bogdanovic, vice president of Human Resources for PSC Metals Inc., said her company has held the contract for the Burns Harbor mill for about 40 years. She said she believes SMS will hire most of the employees now working for her company's Burns Harbor operations.

"I'm almost 100 percent sure they (SMS) will hire those employees," she said Tuesday. "They can't staff that facility with all new employees."

Paul Gipson, president of United Steelworkers Local 6787, which represents the 3,450 hourly workers at ArcelorMittal Burns Harbor, said he hopes SMS will hire qualified workers to do the work now performed by PSC.

"They take care of the scrap and do metallurgical tests to make sure the correct amount and kind of scrap is used in the steel making process," Gipson said. "My thinking is they (SMS) would hire the PSC employees. It makes sense they would take the experienced people."

The three-year labor agreement between Teamster Local 142 and PSC expires Oct. 1. The contract was signed in 2005 after a month-long strike by the workers concerning wages and pension issues.