Hundreds of Iron Range steelworkers facing layoffs in May
ST. PAUL, Minn. (FOX 9) - Hundreds of Iron Range steelworkers are being temporarily laid off due to an excess accumulation of iron ore.
A WARN letter filed by Cleveland Cliffs, Inc., this week notified the state that nearly 600 employees at two northern Minnesota mining companies are temporarily out of work.
Who is it affecting?
What we know:
Hibbing Taconite Company has 255 workers that are impacted. Minorca Mine in Virginia has 342 employees affected.
Why is it happening?
Dig deeper:
Cleveland Cliffs officials say the layoffs are happening due to an excess accumulation of iron ore from last year, and the need to rebalance working capital. Gov. Tim Walz on Thursday put part of the blame on tariffs that are impacting the auto industry.
How long will the layoffs last?
Why you should care:
The layoffs will start by May 20. Cleveland Cliffs officials say they can’t determine how long the temporary layoffs will be, but they could last longer than six months. Officials say there are no trade implications at this time.
What lawmakers are saying
What they're saying:
U.S. Senator Tina Smith, State Sen. Grant Hauschild, Sen. Robert Farnsworth and Walz all released statements Thursday on the layoffs.
Smith: "The indefinite layoffs of approximately 530 Minnesota United Steelworkers who power the HibTac and Minorca mines, announced by Cleveland Cliffs today, is a punch in the gut to Minnesota and the Iron Range. These men and women produce over 75% of the iron ore used to make steel in this country, and they and their families are the lifeblood of the Range economy. For every iron mining job, an estimated 1.8 jobs are created in other economic sectors, so these layoffs will affect everyone."
Hauschild: "This is devastating for our steelworkers, families and our entire Iron Range Community. Mining isn’t just an industry here, it’s our way of life. The men and women who work in our mines are the backbone of the Range, and their hard work has built and sustained communities across MN for generations. When Steelworkers are hurt, we all hurt." But in MN, we have each others back. And right now, we need to stand with the Steelworkers and their families as they navigate this uncertain and difficult time. I will do everything in my power to support these workers and will work with Cliffs during these tough economic times to find a path forward for restarting these mines when conditions allow. Our steelworkers have always been there for us, and now it’s our turn to be there for them.
Farnsworth: "This is tough news today. I have been in touch with Cleveland Cliffs leadership as well as union officials, and we are working together to take care of the employees and their families. It’s unfortunate that the news was leaked to the media before the workers were informed by the company. The domestic steel industry and its workers have suffered for the last four years in the Biden economy. This past election brings an opportunity for change at both the state and federal capitols to improve our economy, support workers, and increase domestic manufacturing and production."
Walz: "Tariffs have thrown the auto industry into disarray, and workers on the Iron Range are paying the price. I’ve been in touch with the union to make sure that laid-off workers are getting connected to the resources they need."