The AFL-CIO is praising Democratic President Joe Biden’s definitive opposition to the sale of an iconic American firm, U.S. Steel, to Nippon Steel of Japan. Biden had forecast his opposition with a prior statement saying he was dubious about the deal. Now he made it definite.
“It is important that we maintain strong American steel companies powered by American steel workers,” Biden said. “I told our steel workers I have their backs, and I meant it. U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated.”
The United Steelworkers (USW) previously publicly denounced the Nippon Steel deal. U.S. Steel has been up for sale for months and the union backed a bid by another U.S.-based steel company to buy it, but that deal fell apart. U.S. Steel’s board then turned to Nippon, without telling anyone—including the union.
In a letter to the Senate, USW wrote, "
The proposed merger also stands to undermine the communities in which our members live and work. Our facilities require consistent investment and improvement so they can stay on the cutting edge of the industry – which is why we negotiate capital investments into our contracts. USS’s board of directors had several viable options for the future direction of the company, but chose to act upon what can only be described as short-sighted greed.
Finally, we are actively engaged with the Committee on Foreign Investment in the United States (CFIUS) to raise our concerns about the ramifications this proposed deal will have on our national security, critical infrastructure, and supply chain, which includes Nippon’s current export practices and its financial interests in the People’s Republic of China.
So when Biden stepped forward to oppose the deal, AFL-CIO Secretary-Treasurer Fred Redmond, a Steelworker and former union vice president, spoke for the labor federation.
“The most pro-union president in our lifetime once again showed he stands firmly with working people,” Redmond said. “President Biden promised Steelworkers he’d always have their backs, and that’s precisely what he did today with his call to keep U.S. Steel American-owned and operated.
“Biden is revitalizing American manufacturing with his Investing in America agenda, at long last prioritizing building things in America again. From roads and bridges to renewable energy, high-tech semiconductors and more, Biden is getting it built in America with good-paying union jobs.
“Biden believes to his core that if we can invent big ideas here in America, we should be able to manufacture them at home. Rebuilding America’s manufacturing capacity is vital for workers, our economy and national security,” Redmond concluded.
Photo Credit: United Steelworkers
