The path to preserving Pittsburgh's steel industry goes through
[Editor's note: This story originally was published by Real Clear Wire.] By Zach Kennedy Real Clear Wire Throughout America and internationally, Pittsburgh is recognized as the Steel City. From the namesake of our storied pro football franchise to the production of the tanks that defeated the Nazis in World War II, steel is in our…
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Pittsburgh, Pennsylvania
[Editor's note: This story originally was published by Real Clear Wire.]
By Zach Kennedy
Real Clear Wire
Throughout America and internationally, Pittsburgh is recognized as the Steel City. From the namesake of our storied pro football franchise to the production of the tanks that defeated the Nazis in World War II, steel is in our DNA and remains a cornerstone of our culture. It should come as no surprise that not only Pennsylvania’s political leaders but also President Biden and former president Trump have all condemned the potential sale of United States Steel (USS) to a Japanese company. It is their opposition to the deal, however, that poses the biggest threat to the steel industry’s long-term sustainability in Pittsburgh.
I grew up in the Monongahela Valley, in a neighborhood overlooking Braddock and the Edgar Thomson Steel Works, one of the most recognizable steel plants under the USS umbrella. My first job as a kid was lifeguarding at Sandcastle Water Park, built in the heart of the Valley and surrounded by steel mills past and present. I’ve taken great pride in Pittsburgh and its iconic steel legacy for as long as I can remember.
In no way is accepting the Nippon acquisition of United States Steel an act of betrayal to our culture and storied history. On the contrary, it is an opportunity to preserve it.
Nippon Steel, Japan’s largest steelmaker, is no stranger to the United States. It has maintained a presence in America since the 1980s and employs over 4,000 people here. Nippon’s nearly $15 billion dollar offer dwarfed that of the next-highest bidder, Cleveland Cliffs, which offered less than half of that sum. USS earnings have plunged in recent years, and have been in steady decline since the 1980s.
Long gone are the days of USS dominance on the global stage, when it was the world’s most profitable company and employed more than 340,000 people, including more than 15,000 in just the Monongahela Valley, when Pittsburgh produced over half of the nation’s steel. Today, USS employs about 11,000 in Pennsylvania, as the majority of steel production has shifted to cheaper foreign markets. Nippon’s offer is a timely shot in the arm to an industry on life support.
The economic benefits to the company and surrounding Pittsburgh community are obvious. Nippon has pledged that it will keep USS headquarters in Pittsburgh, with no job cuts, and that it will not change the legendary company name.
So why is there so much opposition from political leaders in Pennsylvania and nationally?
The United Steelworkers (USW) are one of the most powerful labor unions in the country, representing over 850,000 workers in steel and other industries, and their influence is particularly prevalent in Southwestern Pennsylvania. I learned this firsthand as a political operative on multiple campaigns in Allegheny County, where I fought for and helped earn the steelworkers’ endorsement on behalf of the candidates I worked for. I gained a unique appreciation for the legacy the steelworkers have been fighting to preserve for generations.
USW has forcefully opposed this deal from the outset. Nippon and USS made a crucial mistake in failing to include the steelworkers in their negotiations early on. The steelworkers should have been at that table. As every Pittsburgher knows, organized labor should always be at the table.
Nippon has since vowed to uphold the existing labor contract between USS and USW, but we should not expect trust to be restored overnight. The parties are now in close communication, but only time will tell what the future holds for this deal and how the potential blessing of the USW can smooth over political tensions.
One thing is certain: USS has been in a serious decline, and the Nippon deal is an opportunity to salvage the industry, preserve an iconic name, and keep thousands of hardworking Southwestern Pennsylvanians employed. Furthermore, Japan has stood resolute as one of America’s strongest allies in the Indo-Pacific Region for decades.
If and when the USW and Nippon come to terms, continued political opposition to this deal will represent resistance to the sustainability of steel production in the United States and the economic vitality of Southwestern Pennsylvania.
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