USW’s Strong Support for Biden’s Block of U.S. Steel-Nippon Deal
The United Steelworkers union, representing over 850,000 workers across various industries, has expressed strong approval of President Joe Biden’s decision to block the proposed sale of U.S. Steel to Japan’s Nippon Steel. This proposed deal had sparked significant concerns within the union and across the domestic steel sector, as many feared that allowing Nippon Steel to acquire U.S. Steel would undermine the U.S. steel industry’s long-term viability and national security.
In a statement issued by USW International President David McCall, the union emphasized that the Biden administration’s decision was crucial for the future of the U.S. steel industry, ensuring its continued resilience and security. The USW has long held that any such transaction needed to be evaluated with an eye toward the long-term stability of U.S. steel plants, jobs, and infrastructure. McCall reiterated that protecting U.S. Steel from foreign control was not just about the company’s profitability but also about safeguarding critical domestic industries.
A History of Trade Violations by Nippon Steel
One of the main reasons cited by the USW for opposing the proposed sale was Nippon Steel's history of trade violations. The company has been accused of "dumping" its steel products into the U.S. market at below-market prices for decades. Dumping is a practice where foreign companies sell products at unfairly low prices, often harming local industries by making it impossible for domestic producers to compete.
According to the USW, Nippon’s track record of trade cheating demonstrated its willingness to destabilize the U.S. market for its own benefit. Allowing Nippon Steel to purchase U.S. Steel, they argued, would have given the company even more leverage in the market, potentially driving down prices and destabilizing the U.S. steel industry from within. This, the union warned, would have serious implications not just for steelworkers but also for national security, as a weakened domestic steel industry would be less capable of supporting critical infrastructure and defense needs.
U.S. Steel's Financial Strength: A Solid Future Without the Deal
In response to concerns about U.S. Steel’s financial performance, McCall noted that the company had demonstrated that it could remain a strong and resilient business without foreign ownership. He pointed to U.S. Steel's ability to remain profitable despite the pressures of global competition, stating that the company’s recent financial performance showed that it had the capacity to thrive independently.
The USW called on U.S. Steel’s board of directors to build on this strength and ensure that the company remains competitive and financially stable. The union's message was clear: with the right leadership and a commitment to domestic priorities, U.S. Steel could continue to support good-paying jobs, contribute to national economic security, and ensure the steel industry remains an integral part of the country’s infrastructure and defense sectors.
Biden’s Commitment to American Workers
The USW also took the opportunity to commend President Biden for his continued dedication to American workers. McCall thanked the President for taking bold action to protect the steel industry, noting that Biden’s stance was not only good for steelworkers but also for the nation’s broader economic and national security interests. Throughout his career, Biden has consistently championed policies that prioritize American jobs and industries, and this move to block the USS-Nippon sale was in line with that commitment.
Biden’s decision was seen as an important step in ensuring that the U.S. steel industry remains a key player in the global economy, both in terms of producing steel for domestic needs and as a vital component of national defense. The USW believes that this decision will help maintain a strong, competitive, and secure domestic steel industry for years to come.
USW’s Role in Protecting Jobs and National Security
The USW represents workers across many critical industries, including metals, mining, chemicals, rubber, and auto supplies, among others. Its advocacy for American workers goes beyond protecting steel industry jobs; it extends to preserving the integrity of sectors crucial to the nation’s infrastructure and defense capabilities.
As part of its broader mission, the USW continues to push for policies that protect jobs, support sustainable industry practices, and ensure that the U.S. economy is not undermined by unfair foreign competition. The union’s strong stance against the proposed USS-Nippon sale reflects its commitment to these principles.
