Concerns about Nippon's U.S. Steel buyout remain high

Pat Gallagher, President of the North Coast Area Labor Federation, discussed the recent approval of Nippon Steel's acquisition of U.S. Steel, highlighting concerns about job security, union representation and national security implications.

The U.S. Steel buyout by Nippon Steel has raised significant concerns for the United Steelworkers union. Gallagher, a retired Steelworker, explained that the USW opposes the sale due to U.S. Steel's viability as an independent company and fears about potential production shifts to non-union facilities. He said introducing a “golden share” for the U.S. government in the deal has created uncertainty about the partnership structure and decision-making processes. Gallagher said the USW is awaiting access to the sale agreement document to understand its implications and fully protect members’ jobs.

Gallagher then discussed the current state of the steel industry, noting a slight slowdown in demand and production. He expressed disappointment over Cleveland Cliffs' announcement to close some union-represented plants but remained hopeful about the company's commitment to maintaining jobs. Gallagher mentioned that there have been discussions around reopening previously shut-down plants; however, there is still too much uncertainty surrounding future investments in the industry.

Finally, Gallagher emphasized the need for more union-friendly candidates in upcoming elections, including congressional races and local mayoral contests. He highlighted the AFL-CIO's candidate school program, which encourages union members to run for public office. Gallagher stressed the critical role of having middle-class representatives in government to advocate for policies that benefit working people and improve living standards.

Listen to the full episode to hear more from Gallagher on the steel industry's future and labor's political strategy.