BURNS HARBOR — The number of planned layoffs from ArcelorMittal's Burns Harbor steel mill in Porter County will be reduced from more than 2,400 to fewer than 500 under an agreement between the company and the United Steelworkers.

ArcelorMittal announced last week that it had notified the union about plans for an indefinite layoff of as many as 2,444 workers from the plant beginning in January. About 3,450 union employees work at the mill along Lake Michigan.

The new agreement reached Wednesday calls on the union to make "a sincere effort to get 490 hourly workers to accept a voluntary layoff," United Steelworkers Local 6787 President Paul Gipson said.

ArcelorMittal said in a statement that it was pleased the agreement "substantially alleviates the number of work force reductions necessary at its Burns Harbor facility to address the unprecedented downturn in business, which is a direct result of the current extraordinary economic environment."

Some 1,750 workers at the mill are eligible to retire, and Gipson said he expected no shortage of volunteers for the layoffs. Any retirements will also count toward the 490 total.

The company also can schedule 900 workers for 32 hours per week rather than 40 under the deal.

The union also agreed to forgo overtime pay and cap an incentive program based on production during the layoff period. The company agreed not to employ outside contractors during the layoffs, not to transfer work to other plants and to rescind the layoff notice it previously filed with the state.

"Everything considered, this is a good agreement," Gipson said. "It allows people to keep their jobs, and the plant and its operations won't be harmed."

Luxembourg-based ArcelorMittal, the world's largest steelmaker, announced Wednesday it is looking to cut 9,000 jobs through voluntary agreements, shedding around 3 percent of its global workforce in response to the economic downturn.

The company said it was aiming to reduce costs by $1 billion. ArcelorMittal has some 326,000 employees in more than 60 countries.