Regional

Chorus to approve U.S. Steel-Nippon deal grows louder

Jack Troy
By Jack Troy
3 Min Read Dec. 12, 2024 | 1 year Ago
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United Steelworkers President David McCall was mentioned only once by name Thursday afternoon at a rally supporting the sale of U.S. Steel to Japan’s Nippon Steel, but his intransigence over the $15 billion acquisition looms much larger with a decision on the deal likely imminent.

“I want to know: Who’s against it? It’s one person,” said North Braddock Mayor Cletus Lee. “Dave McCall, get your head out of your (butt).”

McCall has doubled down on his gripes with a pact that, if Nippon keeps its word, would bring at least $1 billion in upgrades to the Mon Valley Works, a $5,000 bonus per eligible worker and guarantees of no plant closures or layoffs through 2026.

All the while, the number of rank-and-file steel workers in favor of the deal might be growing.

“It’s basically a 50-50 split at Edgar Thompson,” said Dwayne Hixon, a worker at the steel production facility in Braddock.

That might grow, in his view, adding “a lot more people are becoming open to the deal.”

Brian Pavlak, a Clairton Coke Works employee, put the proportion in favor of Nippon ownership at 90% at his facility.

McCall told TribLive last month he remains resolute in his stance, even as lower-level leaders have defected and company executives have warned the integrated steelmaking operation’s days could be numbered without a deal.

The more than a dozen U.S. Steel employees, industry advocates and politicians who took the podium Thursday had a second target on their minds: Joe Biden, who is reportedly primed to block the acquisition pending a recommendation from a government panel that examines the national security implications of investments from abroad.

The multi-agency Committee on Foreign Investment in the United States has until Dec. 23 to release its report on possible security risks of the domestic icon becoming Japanese-owned.

An all-clear recommendation from the panel would green-light the deal, which was announced last December and got overwhelming approval from U.S. Steel stockholders in April. A split decision or recommendation to block would start a 15-day clock for Biden to make a decision.

Before a crowd of hundreds wearing orange jackets, USW Local 2227 Vice President Jason Zugai gave a plea for “politicians to understand that this affects our jobs, our families and our communities.”

By politicians, he means federal office holders who’ve lined up against the deal.

West Mifflin Mayor Chris Kelly specifically called out Democratic Sens. John Fetterman and Bob Casey for their opposition to the pact as well as Casey’s incoming replacement, Republican Dave McCormick, for his relative silence.

“There’s no national threat,” Kelly said. “That’s bogus.”

U.S. Steel has spent at least a year and a half seeking a buyer. It passed last year on a $7.3 billion offer from Cleveland-Cliffs, a specialty steel maker with a large mill in Butler, over union objections, sparking an adjacent public relations battle between the companies.

With the overall struggle poised to end — or at least enter a new chapter since U.S. Steel and Nippon have signaled interest in litigation without the OK from Biden — remarks from stakeholders have grown more colorful.

“These are the real workers at the plant. The real USW. These are the men and women that the leaders in Washington, D.C., need to hear from,” said Kurt Barshick, vice president of the Mon Valley Works. “They don’t need to hear from the Cleveland-Cliffs fan club on the 12th floor of the USW office.”

Editor’s note: This story was amended to show the Cleveland Cliffs’ offer was $7.3 billion, not $7.3 million.

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About the Writers

Jack Troy is a TribLive reporter covering business and health care. A Pittsburgh native, he joined the Trib in January 2024 after graduating from the University of Pittsburgh. He can be reached at <ahref="mailto:jtroy@triblive.com">jtroy@triblive.com.

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