Shapiro’s 'Critical' Engagement in U.S. Steel Sale Questioned

SEATTLE (Scrap Monster):  As the $14.9 billion overseas acquisition of Pittsburgh’s U.S. Steel barrels toward resolution of some kind, the state’s top-ranking Republican says Gov. Josh Shapiro hasn’t been clear about whether he supports it.

The public silence is deafening for those who, like Senate President Pro Tempore Kim Ward, want to see Japanese-owned Nippon Steel buy the iconic company and preserve 4,000 jobs in the region.

In a letter sent Monday, she urged the Democratic governor to remind the Biden administration of what’s at stake if the federal government blocks the deal over perceived national security concerns that she called “unfounded.” Even if the president doesn’t act before his term expires, President-elect Donald Trump has likewise promised to kill it.

Such an action means the company will “pivot away” from its blast furnaces, including the one at Mon Valley Works, which Nippon has slated for a $1 billion upgrade, and move its headquarters out of Pittsburgh, dealing an economic and symbolic blow to Pennsylvania.

“Equally important, the people whose jobs depend on the success of U.S. Steel need to hear from you,” Ward writes to Shapiro. “This acquisition represents a rare inflection point for our state’s steel industry, its workforce and our economic future.”

The comment echoes familiar disputes between the governor's mansion and the upper chamber. When legislative deals fall apart with the Democratic-majority House, Shapiro says obstinent Senate Republicans are to blame, such as the recent breakdown in mass transit funding.

Republicans, for their part, think Shapiro should be more involved in policy negotiations.

There's also been personal blows. During an October 2023 press conference, Shapiro deflected Ward's criticism over his office's handling of a sexual assault complaint against a top aide, saying "consider the source when it comes to the President Pro Temp."

Manuel Bonder, the governor’s spokesman, told The Center Square on Wednesday that his involvement started as soon as the deal was first announced in December 2023.

“Governor Shapiro isn’t focused on social media posts or leaking letters,” Bonder said. “He has picked up the phone, gotten in the room, and is working directly with key parties to see if a deal can be reached that protects Pennsylvania jobs and meets the needs of the workers who built this company.”

Legislative sources dispute this, noting that his statements still don't make clear his position on the deal and are "slippery," at best. 

Nippon says its longtime presence in the United States makes it an ideal partner to help grow the steel industry domestically. According to President Tadashi Imai, Nippon’s 2,000 patents and 4,000 employees based in Pennsylvania, Alabama, Virginia, and West Virginia support this assertion.

An economic impact study from the Pennsylvania Economy League found that, in 2024, the state’s $33.1 billion steel industry employs nearly 31,000 workers in iron and steel mills and ferroalloy manufacturing.

Resistance to Nippon’s proposal, however, extends nationwide.

The United Steel Workers Union – representing 850,000 members across the country, including some from Nippon – backed the White House’s opposition, calling for U.S. Steel to remain a domestically-owned and operated company.

In a Nov. 14 statement signed by union International President David McCall and Mike Millsap, a district leader and chief negotiator, the officials said Nippon will say anything to “close the deal” and will eventually abandon facilities in Pennsylvania to centralize steel production in Arkansas.

“The proposed USS-Nippon deal remains dangerous for our members and for the country. Nothing has changed,” McCall and Millsap said. “If we’re serious about our national and economic security, we must protect the viability and sustainability of raw materials and the melting, pouring and finishing of steel in our facilities.”

Not all U.S. Steel workers share the same concerns. In September, more than 1,000 employees rallied outside the company’s headquarters in Pittsburgh in support of the acquisition as a last-ditch effort to save their jobs.

Clairton Mayor Richard Lattanzi told KDKA on Tuesday that should Mon Valley’s steel mill in the community close, the town would be decimated: 1,000 jobs lost, or roughly 30% of the tax base.

“I’ll be honest with you the city of Clairton, there ain’t no sense being mayor because there ain’t nothing that’s going to get done here,” he said on the Marty Griffin show.

Ward, whose Senate district envelops Mon Valley Works, noted that her compassion for the union workers hanging in the balance comes from lived experience. In the 1980s, her father lost his job as the industry slid into decline, forcing the family into “tremendous hardship.”

That’s why, she said, the governor should publicly declare his position, for the benefit of the thousands of workers caught in the middle.

Bonder said the final call isn’t up to him.

“While a determination about this proposed deal will ultimately be made by the White House, Governor Shapiro and his team will continue to act as an honest broker and work closely with all parties to find a solution that protects Pennsylvania jobs,” he said.

Courtesy: www.thecentresquare.com