U.S. Steel warns Pittsburgh headquarters and thousands of jobs are in jeopardy without sale to Nippon
PITTSBURGH (KDKA) -- U.S. Steel says it may have to move its headquarters from Pittsburgh and thousands of union jobs could be at risk if its sale to the Japanese company Nippon Steel fails.
President Biden has promised to keep U.S. Steel an American company, a position echoed by both presidential nominees Vice President Kamala Harris and former President Donald Trump. But in a press release Wednesday, the company warned that the sale falling through could detrimentally impact Pittsburgh and the American steel industry.
While elected leaders and the United Steelworkers union have opposed the deal, some employees rallied in support of the sale at the U.S. Steel Tower in Pittsburgh on Wednesday.
"Today's rally is about displaying support for the transaction with Nippon Steel. We want elected leaders and other key decision makers to recognize the benefits of the deal as well as the unavoidable consequences if the deal fails," said U.S. Steel CEO David Burritt in a news release.
Without the sale, U.S. Steel says it will "largely pivot away" from its blast furnace facilities, putting thousands of union jobs at risk. U.S. Steel also says the lack of a deal with Nippon "raises serious questions" about keeping its headquarters in Pennsylvania, where the company says it supports over 11,000 jobs and generates $3.6 billion in total economic impact a year.
Burritt has said in the past that if the sale to Nippon Steel goes through, U.S. Steel would keep its name and remain headquartered in Pittsburgh.
Some employees rally for merger with Nippon Steel
Several hundred employees of U.S. Steel gathered at Steel Plaza on Wednesday to urge people over politics, saying it's politics that has led both Republican and Democratic politicians to oppose the sale.
"U.S. Steel has been an amazing company to work for the past 17 years, and I have been able to provide a great quality of life for me and my family. Nippon-U.S. Steel merger guarantees the Mon Valley continues to operate," said Tom Tyszkiewicz, the manager of U.S. Steel's Mon Valley Works.
Several local politicians showed up to show support for the merger.
"This is a lifeline to our Mon Valley, and U.S. Steel is our largest manufacturing employer," said Republican Allegheny County Councilmember Sam DeMarco.
"I'm wondering why more people aren't pissed at the politicians using these people in the Mon Valley as pawns," said West Mifflin Mayor Chris Kelly. "Whether you are Democrat or Republican, you should be upset."
Speakers stressed the $2.7 billion investment that Nippon has pledged to upgrade U.S. Steel's facilities, without which U.S. Steel executives insist could lead to the end of the Mon Valley Works.
"We don't have the ability to have the money to make $2.7 billion in investment in our facilities," said U.S. Steel's vice president of sales, Rob Kopf.
But United Steelworkers President Dave McCall says threats to close down the Mon Works is a new low in the public relations battle.
"It's very threatening and there's no call for it," McCall said.
"U.S. Steel is not a company in trouble, has not been a company in trouble," he added.
Sens. Casey, Fetterman respond to U.S. Steel's "threats"
Both of Pennsylvania's Democratic senators released statements standing with union workers.
"As I've always said, I will follow and stand with the United Steelworkers against the shameless executives looking for a golden parachute," said Sen. John Fetterman, who lives across the street from U.S. Steel's Edgar Thomson plant in Braddock.
Sen. Bob Casey said Burritt's comments show a "deep disrespect" for workers.
"For years, U.S. Steel's corporate leadership has been refusing to invest in Southwestern Pennsylvania and the Steelworkers, and Mr. Burritt's comments are yet another example of how he is willing to put livelihoods at stake if he does not get what he wants," Casey said. "U.S. Steel's union jobs in the Mon Valley are vital to the region's economy and I encourage Mr. Burritt to come to the table and work with the Steelworkers to protect and keep these jobs in Pennsylvania."
U.S. Steel's sale to Nippon faces growing opposition
When Harris visited Pittsburgh on Labor Day, she said U.S. Steel "should remain American-owned and American-operated," saying it's "vital for our nation to maintain strong American steel companies." But without a sale, U.S. Steel said the American steel industry would be deprived of an opportunity to better compete globally.
At the event Monday, United Steelworkers International President David McCall threw the union's support behind Harris, saying a sale to Nippon would violate their collective bargaining agreement with U.S. Steel.
"But more importantly, it's very important to national defense and critical supply chain that we keep making steel in America in blast furnaces," McCall said.
In response to Harris' remarks, U.S. Steel released a statement saying it'll be a "much stronger company" as a result of the sale and the American steel industry will be "more globally competitive." The company also said Nippon Steel has committed to investing nearly $3 billion in union-represented facilities.
While Trump took Labor Day off from the campaign trail, he has also vowed to block the deal if elected.
The $15 billion sale to Nippon Steel, Japan's largest steelmaker, was announced in December. It faced immediate opposition from the union, local leaders and both of Pennsylvania's Democratic senators.
Amid questions about the merger's future, the Committee on Foreign Investments said it hasn't yet made a recommendation to the president.
