Leaders worry about what sale of U.S. Steel to Japanese company means for Pittsburgh
PITTSBURGH (KDKA) -- There's a strong reaction to the announcement that U.S. Steel has agreed to its acquisition by a Japanese steelmaker.
Assuming the deal goes through, by mid-2024, U.S. Steel, long identified with Pittsburgh, will now be owned in Tokyo and despite assurances from both Nippon Steel and U.S. Steel that Pittsburgh will remain the headquarters of U.S. Steel as a subsidiary, some worry about what the future holds for the company in this region.
Among the first to react to the announcement was the United Steelworkers Union, saying neither Nippon nor U.S. Steel had reached out to them in advance. In a statement, Union President David McCall said, "To say we're disappointed in the announced deal between U.S. Steel and Nippon is an understatement, as it demonstrates the same greedy, shortsighted attitude that has guided U.S. Steel for far too long."
U.S. Steel CEO Dave Burritt tried to assure that Nippon, NSC, would live up to all labor agreements.
"NSC has agreed to honor all of the agreements between U.S. Steel and the unions that represent U.S. Steel employees," Burritt said.
Keeping the 3,700 jobs at U.S. Steel at the Edgar Thomson Works, the Irvin Works, the Clairton Coke Works and the Pittsburgh headquarters is job one, say local elected officials.
"I will fight any loss of one job. I went through this in the 80s in McKeesport when the Mon Valley lost an awful lot of employees through U.S. Steel, and I'm not going to let that happen again," said Pennsylvania Sen. Jim Brewster, D-McKeesport.
Brewster, who represents all three Mon Valley U.S. Steel plants, says he's willing to give the new Japanese owner a chance to prove it cares about this region, a sentiment echoed by state Senate President Kim Ward, R-Hempfield.
"Their being bought by a foreign entity is out of our hands. What we can do here on the state level and with our U.S. senators and congressmen is to fight to make sure they stay here. This is Pittsburgh. We're the Steelers. We make steel," Ward said.
Pennsylvania's two Democratic senators, Sens. John Fetterman and Bob Casey, both issued statements voicing concern over the deal.
Fetterman, who lives across from U.S. Steel's Edgar Thompson plant in Braddock, vowed to "take all possible actions" to block the acquisition.
"This is yet another example of hard-working Americans being blindsided by greedy corporations willing to sell out their communities to serve their shareholders. I stand with the men and women of the Steelworkers and their union way of life. We cannot allow them to be screwed over or left behind. I promise to them and to all forgotten communities across Pennsylvania that I will work with Senator Casey and the rest of the delegation to fight like hell to make this right," Fetterman said.
Casey said based on initial reports, "this deal appears to be a bad deal for Pennsylvania and for Pennsylvania workers."
"I'm concerned about what this means for the Steelworkers and the good union jobs that have supported Pennsylvania families for generations, for the long-term investment in the Commonwealth, and for American industrial leadership," Casey said.
Congressman Chris Deluzio said the deal "sounds an awful lot like a betrayal" and he vowed to fight.
"Our region knows all too well what it's like to get screwed over, to see our hard work tossed aside and our good union jobs shipped overseas by corporate executives and Wall Street chasing cheap labor and fatter profits. Today's announced sale to a foreign company feels like déjà vu all over again," Deluzio said.
Ron Ashburn with the Association of Iron and Steel Technology says Nippon is no stranger to this region and this could be positive for the Mon Valley.
"They have operations as nearby as West Virginia, throughout Indiana, in the southern United States, and in Mexico as well, so their North American footprint is larger than perhaps many might realize," Ashburn said.
In a statement, Gov. Josh Shapiro said he worked with the secretary of Community and Economic Development to learn more about the intended sale and spoke directly with the leader of the United Steelworkers in Pennsylvania, the CEO of U.S. Steel and senior leadership at Nippon Steel.
"In the days and weeks ahead, Governor Shapiro will continue to engage with key stakeholders in pursuit of his top priority: protecting good-paying Pennsylvania jobs in the steel industry, keeping U.S. Steel's headquarters in Pittsburgh and production in the Mon Valley and Western Pennsylvania, and ensuring the steel industry has a real growth strategy that benefits Pennsylvanians and the Commonwealth as a whole," Shapiro's statement read in part.
How this all turns out for Pittsburgh and this region remains to be seen. Nippon and U.S. Steel hope to close the deal by mid-2024, but there are government approvals needed ahead.
