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Proud history; sad recent times It has not been a good decade for Bethlehem Steel, the company whose products were used to build the Golden Gate Bridge, Rockefeller Center, and the U.S. Supreme Court building. Because of protracted industry-wide problems, Bethlehem has been forced to sell divisions, including its namesake plant in Bethlehem, Pennsylvania, and pursue massive downsizing efforts. America's second-largest integrated steel company (behind USX - U.S. Steel), Bethlehem has recently been facing a declining demand for steel and increased competition from upstart mini-mills. In 1997, the company reversed its sell-off trend when it acquired Lukens, which made it the nation's largest maker of steel plate. As part of the $740 million deal, the company sold some of Lukens' businesses to Allegheny Teladyne for $175 million. Foreign dumping Former Bethlehem CEO Hank Barnette was the leading voice attributing the most recent woes of the U.S. steel industry to import dumping from foreign countries, primarily Asia and Russia. Barnette, who served on a presidentially-appointed trade committee, was not alone in accusing steel producers in those regions of selling steel in the U.S. at unfairly low prices (below production costs or home-market prices). The industry filed formal complaints in September 1998. Bethlehem pointed to trade problems as the major reason for poor financial performance in 1998, which saw Bethlehem post decreases in both earnings and revenue. Throughout the year, Barnette warned that steel dumping was hurting Bethlehem. While most of the company's mills ran at 100 percent capacity in 1997 and at the beginning of 1998, Bethlehem's production dropped because of lack of sales. Mills that historically had been open for certain vacations were shut down for holidays. In October 1998, the firm closed down a plate mill in its Sparrows Point division (near Baltimore), laying off 500 employees. The company warned that further layoffs at that location are possible and that a $300 million construction project there was in jeopardy. And in January 1999, Bethlehem announced the permanent closing of locations in Ohio and Pennsylvania that it planned to sell. Trying to hold on... Faced with slumping revenues and a negative net income in fiscal 1999, in addition to the threat of a hostile takeover by Wheeling Pittsburgh Steel Corp., Bethlehem employed additional survival techniques in 2000. In the summer of the year, the company formed a business services division, whose purpose was to cut the company's costs. Approximately 500 workers will lost their jobs by January 2001. Also, in July, Bethlehem announced plans to sell its interest in Presque Isle Corporation. Indeed, a plethora of challenges face new CEO Duane R. Dunham, who replaced retired Barnette in mid-2000.
Because of the changing market, Bethlehem Steel is not currently hiring many new employees into its corporate offices. However, the company is actively pursuing candidates for the operating departments at Bethlehem Steel's plants. Most new hires begin work at the Burns Harbor, IN plant. Candidates begin their hiring process for BSC by meeting with members of the company's employment department for "one or two screening interviews." These interviews may take place at a school, as the company "does campus recruiting for positions requiring a college degree - particularly technical jobs." At the second round interview, which is at the company site, candidates "go through a series of interviews with department heads." These interviews usually "consist of three relatively relaxed interviews, one with the Human Resources department and two with the department in which you would be working if hired" claims one contact. Another insider reports that for the on-site interview, "the department performs two interviews, provides a tour of the operation and takes you out to lunch in most cases." Reportedly, the "interviews are not too technical, but they do expect you to discuss previous job or school project examples of situations and how you handled them." Insiders claim that most interviewees are discovered mainly through resumes although some are hired through referrals as well.
This ain't a walk in the park The first thing to know if you're considering working at a steel plant for Bethlehem is what you're getting into. Says one Bethlehem insider: "Producing steel and rolling steel is a very demanding and dirty process." Another reports: "Steel is a tough business and you won't get rich, but it has a fair amount of attraction just for its aura for some of us." Insiders do point out that Bethlehem plants are relatively clean - one contact who works with coke ovens notes that "many other steel mills in the U.S. have been forced to shut down their coke ovens due to their inability to meet EPA environmental laws." Still, the work environment at the plants is far from clean. Explains one insider: "The environment is the best in the steel industry, however, this is a steel mill and can get dirty and smoky at times." Rough hours Part of what makes working at steel mills at Bethlehem difficult are the hours. "If you do not want to work shift work," says one insider, "this isn't the place for you. We work 24 hours a day and weekends." At one location, workers rotate through midnight (11 p.m. to 7 a.m.), day (7 a.m. to 3 p.m.) and afternoon (3 p.m. to 11 p.m.) shifts. Says one longtime Bethlehem insider: "I started doing shift work before becoming a supervisor - getting used to those hours wasn't easy." Those who hold office positions with the company can expect to be getting into the office early. Reports one insider: "Usual office work hours are 7:30 a.m. to 4 p.m." At another location, "office staff works from 7 a.m. to 4 p.m. with an hour off for lunch." Tough times for steel "Times are tough right now in the steel industry," says one insider at Bethlehem. Explains another: "The domestic steel market is undergoing dramatic changes, mostly caused by foreign competition. BSC is in a fight for survival." Tough times in the industry, of course, have meant major layoffs. And for those who remain with the company, they have meant cutbacks in perks. For example, says one insider, "most special perks like country clubs for supervisors and lots of vacation, were eliminated at least 10 years ago when the steel industry was devastated." Another contact is more specific about the good old days: "Bethlehem's benefits were at one time the best in the industry. For example: 15 paid holidays, seven weeks after 20 years, nine-week vacation bonus every five years, and full medical, dental life insurance for life after retirement, all free." Most insiders report that despite the loss of these outstanding benefits, Bethlehem still treats its employees well. Says one insider: "Salaries and benefits are competitive - as good as or better than other large manufacturers." Another insider reports that "we are compensated well with good health benefits and a savings plan which the company provides matching funds toward." And yet agrees that "they provide very good health benefits." However, not all are happy. Warns one longtime employee: "Because of the financial condition of the corporation, I would not recommend anyone go to Bethlehem for a 'career.' I don't believe that the corporation will last too long, but if it does, the already poor benefits and perks will become nearly non-existent." Lots of Y chromosomes As one might expect the makeup of workers at the steel plants is predominately male. "We are starting to hire more women and minorities, but it has always been male dominated," reports one plant insider. Says another: "The workforce in the plant is probably about 90 percent men." And another reports that "the plant is definitely a man's world." A "man's world" can mean an uncomfortable environment for women in the plants. Says one longtime insider who has worked at several locations: "The Union-represented hourly workers generally can get away with more things because the union will help keep them from getting fired. Most are decent people, but there are a few bad ones, and the environment in the plant can be crude." However, insiders emphasize that it's a different story for office staff. Says one: "If you are looking for a professional position in an office environment, you can expect a professional and friendly work environment, where being a woman or minority is not an issue." Additionally, Purchasing Magazine recently listed Bethlehem on its list of the "best places for purchasing professionals to work in 1999."
Dorothy L. Stephenson Human Resources (610) 694-3077
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