BURNS HARBOR | The United Steelworkers and ArcelorMittal reached an agreement Wednesday eliminating the forced layoffs of 2,444 hourly workers at its Burns Harbor plant.

Paul Gipson, president of United Steelworkers Local 6787, said the company and his local, which represents the 3,450 hourly workers at the plant, have been negotiating for "five long days" to reach the agreement. The agreement calls on the union to make "a sincere effort to get 490 hourly workers to accept a voluntary layoff," Gipson said.

About 100 of his union members already have agreed, "and I'm sure we'll be able to come up with the rest," Gipson said. If that number isn't reached, forced layoffs could occur, he said. Gipson said the screening process for layoffs begins Monday and he hoped they would be completed by the new year.

"Everything considered, this is a good agreement. It allows people to keep their jobs, and the plant and its operations won't be harmed, Gipson said.

The agreement also allows the company to temporarily schedule a 32-hour, four-day workweek for 900 workers as of Dec. 7; temporarily offers some flexibility in how the company schedules maintenance work forces working on special projects; moves all work that was to be diverted to other ArcelorMittal facilities back to Burns Harbor; and keeps all future orders for the plant at the plant, Gipson said. The union also agreed to cap an incentive plan based on production at 20 percent above the base wage, when on average it could be about 53 percent, Gipson said.

"This temporarily suspends a number of local agreement items," Gipson said. However, there is a provision that if the market recovers and production reaches levels seen before the downturn, then the agreements from the previous contract go back into effect.

The company has agreed to rescind the Worker Adjustment and Retraining Notice it filed with the state Friday that says it potentially could lay off 2,444 hourly workers at the plant in mid-January. It also agreed to conserve cash, and keep all safety personnel and operations in place.

The agreement also puts in a cushion to deal with the matter if the market were to retreat 10 percent further, he said.

"It's painful, but you have to do what you have to do," Gipson said. "It would have been devastating to have 2,444 of our members laid off. We've spent five long nights and days doing this. I'm beat, but it's been worth it."

Gipson said in his 23 years as local president, he never has had to manage a situation as difficult as the current one.

"This came at us like a perfect storm," Gipson said. He added: "One week you get a $3,400 profit-sharing check and next week you're not sure if you have a job."

The company said in a statement Wednesday that it was pleased to reach an agreement "which substantially alleviates the number of work force reductions necessary at its Burns Harbor facility to address the unprecedented downturn in business, which is a direct result of the current extraordinary economic environment."

Jim Robinson, USW District 7 director, said it was good the union had contract stipulations requiring negotiations when faced with layoffs.

Burns Harbor employee Dell Smallwood said he's seen his share of layoffs and good times in his 31-year steel career and he believes both sides did well in making the number of layoffs and low as possible.

"No one wants to see it but you know it's going to happen," said Smallwood, a 49-year-old Hobart resident. "I got a couple of sons that work out here, and I fear for them because they're under five years (of service)."

When referring to the emotional ups and downs of the situation, 52-year-old steelworker and Valparaiso resident Tom Kimes said, "I think the economy as a whole is causing a loss of morale talking about shutting down the plant."

ArcelorMittal stock traded above $100 per share on the New York Stock Exchange in June and on Wednesday it closed at $25.48 per share.