Aug. 28--Gerdau Ameristeel's union workers in Sand Springs will have to choose between a severance package and their jobs if the company decides to idle the plant for two years.

The company and the local chapter of the United Steelworkers union agreed Thursday night that workers who request a severance will forfeit their recall rights, or the guarantee of being rehired if the mill reopens, Gerdau spokesman Phil Bell said.

"They can still reapply, but people that have recall rights will lose those," Bell said.

The plant has about 300 workers.

Gerdau Ameristeel is weighing the option of idling the plant for two years to make upgrades or closing it entirely due to lower demand for steel and a drop in prices.

Bell said the company will make the decision during the next few months to make approximately $100 million in upgrades to keep up with new and upcoming environmental regulations.

The decision somewhat depends on negotiations between Gerdau and state and local officials over an economic incentive package to keep the plant viable.

Both parties have declined to give details on possible incentives.

Gerdau does plan to wind down operations at the plant by mid-October before closing it for the idling.

The agreement will give employees a week's worth of pay for every year of service, up to eight years. Employees would also be eligible for two more weeks of severance if they maintain good conduct until the closing date.

Union officials did not return phone calls.

Adam Belty, a locomotive operator at the plant who has worked there

about 10 years, said he is likely to take the severance and look for new work.

"It's almost like you can't wait around for three years to see if they are going to open it or not," said Belty, who is 38. "I would love to go back if they did it. It's a good place to work and you can't find a place that pays what I was getting there with 10 years of experience."

With rent and bills to pay, Belty said he is considering opening a painting business with his brother.

Employees will be allowed to reapply at Gerdau if the plant reopens, but they won't be hired back at their previous wages, officials said.

Sand Springs city manager Doug Enevoldsen said local officials are working hard to keep the plant in the city.

"This is still an uphill effort, and the community should not build false hope that this means steelmaking will resume here," he said in a statement.

-----

To see more of the Tulsa World, or to subscribe to the newspaper, go to http://www.tulsaworld.com.

Copyright (c) 2009, Tulsa World, Okla.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:GNA, NYSE:GGB,

A service of YellowBrix, Inc.