Sen. John Fetterman (D-Pa.) announced Monday he will try to block the sale of Pittsburgh-based U.S. Steel to Nippon Steel, a Japanese company.
Fetterman cited security concerns and fears that jobs will be lost if the deal goes through.
“I live across the street from U.S. Steel’s Edgar Thompson plant in Braddock. It’s absolutely outrageous that U.S. Steel has agreed to sell themselves to a foreign company. Steel is always about security – both our national security and the economic security of our steel communities. I am committed to doing anything I can do, using my platform and my position, to block this foreign sale,” Fetterman said.
“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’s fellow Democrat Sen. Bob Casey (D-Pa.) agreed.
“The United States marquee steel company should remain under American ownership,” said Casey. “From initial reports, this deal appears to be a bad deal for Pennsylvania and Pennsylvania workers. I’m concerned for 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.”
U.S. Steel agreed to a $14.1 billion deal with Nippon, which is offering to buy the steel giant’s shares for $55 each. Although Nippon claims it will honor all collective bargaining agreements and keep the company in Pittsburgh, the union, United Steelworkers International, is crying foul.
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.
“We remained open throughout this process to working with U.S. Steel to keep this iconic American company domestically owned and operated, but instead, it chose to push aside the concerns of its dedicated workforce and sell to a foreign-owned company.
“Neither U.S. Steel nor Nippon reached out to our union regarding the deal, which is in itself a violation of our partnership agreement that requires U.S. Steel to notify us of a change in control or business conditions,” McCall said.
“Based on this alone, the USW does not believe that Nippon understands the full breadth of the obligations of all our agreements, and we do not know whether it has the capacity to live up to our existing contract. This includes not just the day-to-day commitments of our labor agreement but also significant obligations to fund pension and retiree insurance benefits that are the most extensive in the domestic steel industry.
He called on government regulators to “carefully scrutinize this acquisition and determine if the proposed transaction serves the national security interests of the United States and benefits workers.”
The USW represents 850,000 workers.
President and Chief Executive Officer of U. S. Steel, David B. Burritt, told investors the purchase offer is a good deal.
“I couldn’t be happier with the outcome of our strategic review process, because it delivers on what is best for each of our stakeholders. And importantly, this is the best value with certainty and timeliness to close,” Burritt said.
Following the closing of the transaction, U. S. Steel will retain its iconic name, brand, and headquarters in Pittsburgh. NSC is committed to continuity in strong relationships with U. S. Steel’s suppliers, customers, the surrounding communities, and people that support U. S. Steel’s operations and is committed to being a productive member of these communities, the company said in a press release.
In an October press release, the company said, “United States Steel Corporation’s operations in Pennsylvania, which include U. S. Steel’s corporate headquarters in Pittsburgh and sites in Braddock, Clairton, Fairless Hills, Munhall, and West Mifflin, contributed $3.6 billion to the local and state economy in Fiscal Year 2022, according to an economic impact report released today. The report further concludes that the U. S. Steel’s economic activity supported or sustained 11,417 jobs.
“Bob Casey and Joe Biden have weakened America’s national security and economic standing in the world. We need to be a manufacturing country, with Americans working for American companies,” Dave McCormick, the Republican running against Casey, said on social media.
While Biden and Casey have spent most of their lives in Washington working for the government, McCormick has been in the business world as CEO of a Pittsburgh software company and, most recently, the CEO of Bridgewater, a hedge fund, as well as serving having served in the George W. Bush administration.
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