Pat Gallagher on Cleveland Cliffs layoffs and rail mill closures

Pat Gallagher, President of the North Coast Area Labor Federation, joined the America’s Work Force Union Podcast to discuss some of the recent challenges facing the steel industry, such as the Cleveland Cliffs’ facility closures, the significance of the rail mill in Stilton, Pa. and the upcoming Ohio AFL-CIO Legislative Conference.

Cleveland Cliffs recently announced the closure of three facilities in Riverdale, Ill.; Stilton, Pa.; and Conshohocken, Pa. Gallagher explained that the company aims to concentrate on its core business of flat-rolled steel. The Stilton facility, a rail mill, is particularly significant as it is one of only two active rail mills in the country. The closures are concerning, especially given the potential for increased rail construction under the Biden infrastructure plan. Gallagher emphasized the importance of these facilities, noting that the Conshohocken mill has been recognized for its production of armor plate for military use.

The closure of the Stilton rail mill is a critical issue, as it leaves only one operational rail mill in the U.S., located in Pueblo, Colo. Gallagher said the Colorado facility is partially owned by a Russian oligarch, raising concerns about domestic production capabilities. The Stilton mill was poised to benefit from infrastructure investments, making its closure a significant setback. Gallagher expressed disappointment over Cleveland Cliffs' decision, highlighting the potential for job transfers to other facilities but acknowledging the challenges standalone operations like Stilton faced.

Looking ahead, Gallagher discussed the upcoming Ohio AFL-CIO Legislative Conference, an annual event where labor leaders gather to engage with state legislators. The conference provides an opportunity to discuss key issues affecting Ohio workers, including the potential introduction of So Called “Right-to-Work” legislation. Gallagher noted that while federal issues do impact state-level decisions, the focus remains on advocating for policies that support the standard of living for union members. The conference serves as a platform for labor leaders to educate and inform state legislators about the needs of their constituents.

Listen to the episode above to hear more from Gallagher.