The Steelworkers union local at Sparrows Point has been taken over by its parent organization, a standard practice when a steel mill closes.
United Steelworkers Local 9477 was put into "administratorship" in January, according to Jim Strong, the Baltimore-area director for the USW International.
Strong has been appointed to oversee the local while it winds down operations.
"They've begun the dissolution process, basically," said Chris MacLarion, vice president of the local at Sparrows Point before it was taken over. "Nothing we weren't expecting."
"Though it's catastrophic for our little section of the world, we're not the first local and unfortunately not the last local to go through this," he said.
Two secretaries and one local officer remain on site to handle the shutdown, MacLarion said.
Funds in the local outfit's account, about $400,000, have been put into an escrow account, Strong said.
"This is normal International policy," he said. "It has nothing to do with any concerns about former local union officers."
A commission hearing to review the administratorship transition is scheduled for Wednesday, he said.
Baltimore Sun reporter Jamie Smith Hopkins contributed to this article.