RG Steel to cut pay of managers, office workers

Staff report

WARREN

RG Steel will be cutting the pay of management and office employees at its Warren plant.

The reduction-of- employee measure that is being taken along with several other cost-cutting measures will persist until business conditions improve, said Bette Kovach, spokeswoman for RG Steel.

There will be 140 salaried employees impacted at the Warren facility. They mostly are employees within operations management or office workers in departments such as sales or purchasing, she said.

The reduction does not impact any of the employees at RG Steel who are represented in the contract with the United Steelworkers union, Kovach said.

RG Steel also is reducing costs in other areas where possible, such as contracts for supplies, she said.

The company has made progress toward improving cost structure, but with the uncertain economic outlook, the company has determined it needs to further reduce costs as a way to improve its long-term position, said John Goodwin, president and CEO of RG Steel.

“While there have been occasional signs of industry conditions improving, the fact is the economy and the steel industry have been unable to sustain a meaningful recovery. These cost- reduction efforts, while difficult, are needed to ensure that our cost structure is appropriate for today’s business conditions and that our operations are competitive,” Goodwin said.

RG Steel focuses on providing steel for the construction industry. The economic recovery for construction steel has not been as strong as other industries, such as automotive steel, at this point, Kovach said.

The cuts are being made at all RG Steel facilities.

In addition to Warren RG Steel, LLC has steelmaking facilities in Sparrows Point, Md., and Wheeling, W.Va., and additional finishing facilities in Yorkville and Martins Ferry.