Pa. Governor Josh Shapiro says he will "continue to engage" U.S. Steel following President Biden's decision
HARRISBURG (KDKA) - On Friday morning, President Joe Biden announced that he would block the sale of U.S. Steel to Japan-based Nippon Steel.
Biden said he made the decision to block the proposed $15 billion sale after a government panel recently failed to reach a consensus on the possible national security risks of the deal.
"It is my solemn responsibility as president to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad; and it is a fulfillment of that responsibility to block foreign ownership of this vital American company," Biden said.
Governor Shapiro says he will "continue to engage" with U.S. Steel, Nippon
Not long after President Biden's decision to block the sale, Pennsylvania Governor Josh Shapiro said he would continue his dialogue with the leadership of both companies.
"Since the day this proposed deal between U.S. Steel and Nippon Steel was announced, my team and I have been engaged in intensive dialogue with all parties involved - and my top priority, as always, has been protecting Pennsylvania workers and fighting for a better future for our Commonwealth," Governor Shapiro's statement read. "I have expressed directly to U.S. Steel leadership, I expect U.S. Steel to uphold their commitments to Western Pennsylvania, refrain from threatening the jobs and livelihoods of the Pennsylvanians who work at the Mon Valley Works and at U.S. Steel HQ and their families, and work collaboratively to ensure the future of American steelmaking takes place right here in our Commonwealth...I will continue to engage with all interested parties directly as I continue to fight for Pennsylvania."
Along with Governor Shapiro, Lieutenant Governor Austin Davis called on U.S. Steel, President Biden, and Nippon Steel to keep steel production in western Pennsylvania.
"Now that President Biden has blocked this deal, we need to find a long-term plan for keeping steel production in the Mon Valley and protecting Pennsylvania workers' livelihoods," Lt. Governor Davis said. "No more statements and fired-off social media posts - the workers and their families need to hear a plan. I know the pain and frustration of my neighbors who watched as the steel industry collapsed, laying off thousands of workers and shuttering factories, while leaders in Washington did nothing. I'm deeply concerned this is happening again - and that is unacceptable."
Congressman Chris Deluzio, other elected officials signal support for workers
Meanwhile, two members of Congress from the Pittsburgh area, Rep. Chris Deluzio and Sen. John Fetterman continued their support for the Steelworkers.
"From the beginning, the workers who power this company should have had a seat at the negotiating table - their livelihoods hung in the balance," Rep. Deluzio said on social media. "No matter what, I will keep fighting to protect Western PA Steelworker jobs and American steelmaking."
Senator John Fetterman, the former Lt. Governor of Pennsylvania and mayor of Braddock also voiced his support in an X (formerly Twitter) video.
"Over a year ago, after U.S. Steel announced that were going to sell themselves to Nippon, I went up on the roof of my home and proudly announced I'm going to follow the Steelworkers and protect the union way of life here in the valley," Sen. Fetterman said in the video. "That's not going to change, I'm going to follow the wisdom and the judgment of the working, union members here."
Along with federal elected officials, Allegheny County Executive Sara Innamorato weighed in with a statement.
"Throughout this process, I've maintained that finding a path forward for steel operations in the Mon Valley is an important part of a thriving Allegheny County," her statement read. "Ownership should invest in the workers and honor the collective bargaining agreements now and in the future; be a good community partner with the residents of the Mon Valley, and work with county and local government to build a future where everyone can thrive; and invest in new technologies and infrastructure on-site to modernize the campus, put local people to work, and improve air quality. Ultimately this is a federal decision, but regardless of whether operations are owned by US Steel or another entity, we are committed to working collaboratively with all partners to make sure the Mon Valley is invested in and has the resources it needs."
Steelworkers union divided over deal
Earlier this month when news broke that President Biden may oppose the deal, a rally was held outside the Clairton plant with employees calling on the sale to go through.
Jason Zugai, vice president of Irvin Local 2227, said he had an "uneasy feeling" when he first heard Nippon Steel won the bid to purchase U.S. Steel, but his feelings have changed.
"This incredible deal will solidify all of our jobs for decades to come," Zugai said.
The union leadership, however, was divided on the deal.
Union boss David McCall said in a statement at the time, "[our]only priority has been the long-term viability of their facilities and our domestic steel industry. Nippon is a serial trade cheater and U.S. Steel is viable as a standalone company."
Meanwhile, the United Steelworkers will hold a press conference with McCall at 1:30 p.m.
The company released a statement saying they were "dismayed" by Biden's decision.
"Instead of abiding by the law, the process was manipulated to advance President Biden's political agenda," the statement read. "The President's statement and order do not present any credible evidence of a national security issue, making clear that this was a political decision. Following President Biden's decision, we are left with no choice but to take all appropriate action to protect
our legal rights."
