Indiana Dems caution against U.S. Steel sale amid rumors that Biden will block deal
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The Indiana Senate Democratic caucus spoke out Monday against the controversial sale of U.S. Steel to Japan’s Nippon Steel as President Joe Biden is said to be considering blocking the move.
“Indiana’s steelworkers are the foundation of our economy—individuals who have poured their sweat, skill and commitment into industries that sustain entire communities. The transfer of U.S. industries into foreign hands without ironclad labor protections is not only a risk to our workers; it is a direct threat to the stability of our local economies,” the caucus said in a news release.
“We cannot and will not stand by while the livelihoods of thousands of Hoosier families hang in the balance,” the 10-member caucus continued. “Any deal that compromises worker rights, wages or job security is unacceptable. We demand that U.S. labor laws be upheld, regardless of who owns these companies.”
Indiana’s Gary Works is U.S. Steel’s largest manufacturing plant, according to the company’s website. It can handle more than 7.5 million net tons of raw steel annually. The site has more than 4,300 employees, per Fox Business.
The Washington Post reported last week that Biden is preparing to block the sale, a move that could impact workers here in Indiana.
Nippon Steel proposed buying the Pittsburgh-based steelmaker last December, in a deal valued at $14.9 billion.
U.S. Steel CEO David Burritt has warned that his company would have to close mills if Nippon Steel is unable to acquire it, according to The Wall Street Journal.
It’s the Japanese company that has pledged to invest nearly $3 billion into updates at U.S. Steel’s Gary and Pittsburgh mills.
U.S. Steel wouldn’t do the renovations if the deal falls through: “I don’t have the money,” Burritt said.
Biden said in March it was “vital” for U.S. Steel to remain owned and operated by Americans, a stance he reiterated during an April campaign visit to steelworkers in Pittsburgh.
Former President Donald Trump, the GOP nominee for president, has also criticized the acquisition, and pledged to block it if he wins another term.
U.S. Steel shareholders voted to approve the sale in April.
Vice President Kamala Harris, the Democratic nominee for president, recently told an audience of union workers that the company should remain domestically owned and operated.
“The President mentioned it: U.S. Steel is an historic American company, and it is vital for our nation to maintain a strong American steel company,” Harris said.
The Pennsylvania Capital Star also contributed to this report. The Indiana Capital Chronicle is an independent, not-for-profit news organization that covers state government, policy and elections.