Sparrows Point’s general manager fired by aide to Russian owner
by MARK REUTTER
Thomas J. Russo has been dismissed, effective immediately, as vice president and general manager of Severstal Sparrows Point by a top aide to Russian billionaire Alexei Mordashov.
Sergei Kuznetsov, CEO of Severstal North America, said in an in-house e-mail posted yesterday (and reviewed by The Brew) that Russo would leave the company “to pursue other opportunities.” No reasons for his removal were stated.
David A. Howard, vice president of corporate planning at Severstal, was named the new vice president and general manager. He will report to Alexander Pogozhev, chief operating officer of the group’s North American operations.
As noted in a detailed Brew post last month, Mordashov, CEO and majority owner of Severstal, has been dissatisfied with Sparrows Point’s operating losses and has insisted through his aides that hundreds of union jobs be terminated as a cost-cutting measure.
Russo was known as a peacemaker between the Russian management team, which has assumed an increased presence at the Point, and the United Steelworkers Union. He has maintained a close professional relationship with John Cirri, president of USWA Local 9477.
Employees at the Point have been working under an expired contract, renewed on a month-to-month basis, since September 2008. Kuznetsov has told the union he wants 600 union jobs eliminated by March 31, but the exact number to be terminated has been subject to many changes.
USWA officials are currently negotiating a new contract with Severstal. The contract talks have been rocky and have broken off at various points.
Russo, a veteran Point employee, was appointed general manager in April 2005 after the mill was purchased by Mittal Steel (now ArcelorMittal). Howard, the new GM, has worked in various sales and marketing positions at WCI Steel, an Ohio-based unit of Severstal, and at LTV, now part of Luxembourg-based ArcelorMittal.
Reach Mark Reutter at reuttermark@yahoo.com.