EAST CHICAGO | United Steelworkers Local 1010 is trying to insulate its 3,800 members at ArcelorMittal's Indiana Harbor facility from involuntary layoffs as the steel business continues to shrink.

The attempt to save jobs comes on the heels of a voluntary layoff deal brokered last week between ArcelorMittal and the union at the company's Burns Harbor plant.

Wednesday, USW Local 6787 and the company reached an agreement calling for the union to make a sincere effort to get 490 hourly workers to accept a "voluntary" layoff before any forced layoffs occur.

It also allows the company to temporarily schedule a 32-hour, four-day work week for 900 workers at the Burns Harbor plant as of Sunday.

Tom Hargrove, president of the United Steelworkers local at ArcelorMittal's Indiana Harbor east plant in East Chicago, said Monday that his union was taking particular steps to keep its 500 members who lack seniority from being laid off as steel demand continues to fall.

"I've never seen it (the steel business) this bad," said Hargrove, explaining why layoffs could be expected. "The whole world's situation is bad because of the financial meltdown."

However, a ArcelorMittal spokeswoman said, "There are no layoffs planned for Indiana Harbor Long Carbon at this time."

Under the labor agreement between the company and the union, there must be an agreed "layoff minimization" plan before cutting workers with more than three years seniority. Nonseniority workers -- those with less than three years tenure -- don't have that protection.

The local met with those working at the plant's bar mill Monday to "see what their feelings are" about its attempts to prevent involuntary layoffs.

"Bar (plant officials) came to us and said we have a pressing need to reduce costs," he said. "We're trying to work out something to reduce costs and yet keep all our folks employed."

The local's proposal remained in the planning stages Monday, but Hargrove said it may include cutting the work week to 32 hours from 40 hours for the 80 to 100 nonseniority workers at the bar mill and asking workers to take voluntary layoffs or retire.

About 100 workers already have decided to retire Jan. 1, and more are expected to do so, Hargrove said. About 60 percent of the plant's workers are eligible for retirement, he said.