by Christen Smith
(The Center Square) – Federal interference has threatened the operations of two Pennsylvania steel mills this year.
However, the allies on the battlefield looked completely different – a fact that raises doubts among critics Governor Josh Shapiro loyalty.
When Biden administration regulations on energy efficiency of distribution transformers threatened to close the Cleveland Cliffs plant in Butler County, lawmakers from both parties, the United Steel Workers union and Gov. Josh Shapiro fought back.
The steelworks, which employs 1,300 people in the region, remains the only producer of grain-oriented electrical steel in the country. The pending regulations would remove the material from the domestic market, leaving manufacturers with little choice but to buy amorphous metals from abroad.
The governor, along with congressmen from the region, publicly asked the Biden administration to change course. In tardy March, a few days before the Department of Energy officially removed this provision from the final regulation, WPXI reported that Shapiro told residents at an event where the campaign proved successful.
“It also shows what is possible when we come together, Democrats and Republicans, labor leaders and CEOs, all come together and move in the same direction,” he said later during press conference scheduled for April 4 we celebrate development.
The story of US Steel was very different. When economic forces fueled by climate action policies left the company unable to modernize its steel mills in southwestern Pennsylvania, a $14.9 billion sale offer from Japan’s Nippon Steel cleared the way forward.
However, on January 3, the president halted the merger, citing national security concerns over unfair trade practices in the foreign steel market. This time, a union and lawmakers from across the aisle, including: President-elect Donald Trumpcomplained about the year-long transaction, calling on the administration to keep the company in domestic hands.
U.S. Steel said that without Nippon’s investment, operations would have been moved south to Arkansas, as it did in 2021 after local officials in Allegheny County and the state delayed approving a Mon Valley Works expansion plan. The union argued that Nippon would leave Pennsylvania anyway to avoid collective bargaining.
US Steel supports more than 11,000 workers, many of whom support the merger as a last resort to save their jobs. A leading voice on their behalf, Senate President pro tempore Kim Wardhe said it was “the only real option.”
This time, Shapiro remained neutral. A spokesman told The Center Square that his behind-the-scenes involvement brought union leaders and Nippon executives to the same table, although the decision rested solely with Biden.
And when he did, Shapiro said the conversation wasn’t over and he expected US Steel to stop threatening workers’ jobs and start accepting offers from US buyers.
“The governor’s number one priority is protecting Pennsylvania jobs,” he said Manuel Bonderspokesman for the voivode. “That’s what he’s been working on throughout the whole process and that’s what he’ll continue to work on.
“Again, it’s about their work,” he added. “This is about Pennsylvania livelihoods.”
But Ward said Tuesday that Shapiro’s behind-the-scenes mediation wasn’t good enough. Nor was it his neutrality. On KDKA radio urged the governor to join U.S. Steel and Nippon in the lawsuit filed against the federal government alleging political corruption that led to the unraveling of the sale without a good faith regulatory review.
In a second legal complaint, the companies said labor leaders pressured the president to block the merger. Why? Eliminate the competition and direct the sale to Cleveland-Cliffs, which offered to buy US Steel in July 2023 for less than half the price.
“I’m not saying Cleveland-Cliffs is a bad company, but they can’t afford to invest in US Steel the way Nippon can invest in US Steel to improve their situation here,” Ward said. “They can easily get this stuff across the border.”
The chamber’s highest-ranking Republican pointed to FirstEnergy’s takeover of West Penn Power. The energy conglomerate consolidated operations across its portfolio of Pennsylvania energy companies and moved about half of those jobs to Ohio, Ward said.
“The governor keeps saying we don’t want to lose to Ohio,” she said. “Well, we’re going to lose to Ohio.”
Bonder said the governor is not focusing on public statements or social media posts. Rather, he had been involved in the talks “from literally the day the proposed deal was announced.”
“And his top priority from that first moment, as it always has been, is protecting Pennsylvania workers, protecting Pennsylvania jobs, and in this case, specifically, fighting for the future of Pennsylvania steelmaking,” he said.
For Ward, dismissing her comments is tantamount to firing workers disillusioned and dismayed by the merger’s failure – as well as the 262,000 people she represents.
“While Biden has made the final decision, the consequences of that decision are ultimately Pennsylvania’s problem,” she said. “And Gov. Josh Shapiro has failed to show leadership regarding the potential future of the Mon Valley.”
“Shapiro has remained silent on the acquisition and has not offered any solutions despite having the economic development resources to do so,” Ward continued. “Shapiro claims he has ‘worked over the last year to unite those involved to protect Pennsylvania jobs,’ but there has been no public evidence to support these actions, leaving Pennsylvania workers uncertain about their future.”
The governor’s office said that unlike federal regulations that threatened the Cleveland Cliff steel plant in Butler County, the solution to U.S. Steel’s economic problems is not as clear-cut.
Nevertheless, Bonder said steel workers concerned about Biden’s decision to block the merger should know “the governor has their backs.”
“He is the one the governor fights for every day and will fight for him every day,” he said. “I think it’s very important to know how committed the governor has been to fighting for their jobs and working to achieve the best possible outcome for Pennsylvania throughout this process.”
