GEORGETOWN - State officials don't know of
anything further they can do for Georgetown Steel beyond the package
that was rejected by workers Wednesday.
"I do not know of anything," said state Rep. Vida Miller,
D-Pawleys Island. She and other local legislators worked with local
and state officials to come up with the aid package Georgetown Steel
requested.
The governor's office said it has done all it can. After the vote
Wednesday night to reject the plan, Gov. Mark Sanford said through
his spokesman that he was pleased to work on the mill's behalf given
the tight economic times for the state.
Workers voted against a plan for a 60-day, 10 percent pay cut.
That was part of a company cost-cutting plan, along with $1 million
in new capital injected by owner Daniel Thorne in return for relief
on the plant's $500,000-a-week power bill.
Santee Cooper was to give Georgetown Steel its $210,000 deposit
back and let it pay biweekly instead of weekly.
That would have given the company about $3 million in cash-flow
wiggle room to help get it through the fourth quarter, Miller
said.
Georgetown Steel officials said they think a combination of a
rising economy and higher steel prices would take over in the new
year, she said.
The pay cut was "part of a total package, and Santee Cooper was
doing this in good faith with the steel mill," Miller said.
Steelworkers Union of America Local 7898 president James
Sanderson said Santee Cooper should give the company back its
deposit anyway and let it pay monthly as most other customers
do.
Any risks to Santee Cooper would total less money than the state
would pay out in unemployment checks and other support if the plant
closes, Sanderson said.
The mill is not behind on any bills with Santee Cooper, said
Willard Strong, spokesman for the utility. The mill's payment
arrangement is typical of what is required of companies after a
bankruptcy.
The previous owners filed for bankruptcy protection for
reorganization then decided to liquidate. Thorne bought the mill
through a bankruptcy court sale.
"When you declare bankruptcy, that's a serious thing," and Santee
Cooper was trying to protect its revenue and other customers by
imposing a special payment plan, Strong said.
He didn't think anything else would be done unless the workers'
changed their position.
"I think we've demonstrated that we want to work with those
folks," he said. "They are in a tough position. I wish them the
best; we all do."
Miller said simply releasing the deposit and extending the
payment schedule would not give Georgetown Steel the $3 million it
said it needed to get by for the next few months.
The only other hope she sees is the possibility of refunds from
tariffs charged to foreign steel manufacturers who export their
products here. But that fund has a limited amount, and it is unknown
how much Georgetown Steel could receive from it, if anything, she
said.
U.S. Sen. Lindsey Graham, R-Seneca, said Wednesday he will
continue to work on the tariff refunds for the mill.