Fifty-seven employees will get pink slips at the end of the month when an East Chicago trucking company, ArcelorMittal shuts down its trucking business.
P.T.O Services sent a WARN letter to the Indiana Department of Workforce Department on April 1, notifying the agency of the impending layoffs. In total, 47 truck drivers and 10 office workers will lose their jobs.
The drivers are members of Teamsters Local 142.
“ArcelorMittal has made the decision to close Burnham Trucking, a subsidiary trucking company which operated 50 leased truck tractors to transport steel products from ArcelorMittal Indiana Harbor to customers,” spokeswoman Mary Beth Holdford told the NWI Times. “The lease agreement expires in May 2015 and will not be renewed. The decision to consolidate freight partners is part of ArcelorMittal’s continued focus on increasing the efficiency of our facilities and the productivity of our workforce.”
Burnham Trucking and is a subsidiary of ArcelorMittal. ArcelorMittal says its severing its ties with Burnham because the company doesn’t want to invest in new trucks, the local Teamsters union states.
The trucking side of the business has been operating for nearly 20 years.
The employees who will be laid off will be proved with a severance package which will include unused vacation time and many of the employees were offered out-of-state jobs, however it’s hard for many to find comparable positions with healthcare and benefits.
The WARN letter can be viewed here.