The company announced that it had notified the United Steelworkers labour union and other interested parties about the possibility of an "indefinite layoff" at its Burns Harbor plant in the second half of January.

The recent drop-off in global steel production and the company's previously announced plan to reduce production in North American by 40 per cent factored into the decision, the company said.

"Potential work force reductions are a direct result of the extraordinary economic environment we are facing, and the company hopes to return workers to their jobs as market conditions warrant," ArcelorMittal said in a statement on Friday.

Jim Robinson, director of United Steelworkers District 7, said the union is negotiating with ArcelorMittal to minimize the number of layoffs.

Union leaders at the international level "certainly knew what was going on," Robinson said. "They see the fact there aren't any orders. We're not making a lot of steel."

Robinson said the global economic crisis that has resulted in the cut in steel production calls for action by elected officials.

"They need to step up to the plate and quit worrying about investment bankers and CEOs and start acting on behalf of average, middle-class American workers," Robinson said.