Bethlehem Steel Corp. said yesterday that, because of a seasonal slowdown, softer-than-expected demand for steel and the short Thanksgiving workweek, about 700 workers will be temporarily off the job next week.

The bankrupt steelmaker will virtually cease operations on its finishing side, which is easier to start and stop than the steel-making side of the plant. The workers can either take accrued vacation time or be on temporary layoff and apply for unemployment benefits.

Workers on the steel-making side of the Sparrows Point plant will not be affected.

A spokeswoman for Bethlehem said such shutdowns are not unusual during times of weakened demand when they coincide with short holiday work weeks.

She said a temporary shutdown of the finishing side might also occur during Christmas week, should demand remain soft.

"There's mixed emotion," said John Cirri, president of United Steelworkers of America Local 9477, which represents Bethlehem workers in Baltimore. "It's right before the holidays, and others see it as a sign of uncertainty."

Bethlehem filed for bankruptcy protection in October 2001 and is trying to restructure, either as a stand-alone company or in partnership with another steelmaker. It is in a 60-day period during which International Steel Group Inc., of Cleveland, has the exclusive right to do "due diligence" of Bethlehem's assets in preparation for a possible acquisition.

So far, Bethlehem's efforts to merge with or be acquired by another entity have been stymied by its enormous "legacy costs" - primarily pensions and health care obligations for retirees.

The steelmaker's health care obligation stands at about $3 billion, and its pension fund is short about $3.2 billion. However, the federal Pension Benefit Guarantee Corp. is expected to take over Bethlehem's pension plan in the next several months, alleviating it of that debt.

The company has lost $270 million in the first nine months of the year, and its stock is trading at 25 cents a share on the over-the-counter bulletin board after being delisted from the New York Stock Exchange in June.

The company is in talks with the Steelworkers and seeking a contract that would allow for more flexible work rules, wages based on performance, a pension plan that does not promise defined payouts and significantly reduced health care obligations to retirees.