Steel Mills
Cliffs hosts fireside chat on industry, union, government collaboration
Written by Laura Miller
October 12, 2024
Cleveland-Cliffs’s Chairman, President, and CEO Lourenco Goncalves hosted a fireside chat with US Trade Representative Katherine Tai and Acting Secretary of Labor Julie Su on Friday at the company’s plate mill in Coatesville, Pa. They were joined by Congresswoman Chrissy Houlahan (D-Pa.) and United Steelworkers (USW) Director of District 10 Bernie Hall.
Hall mentioned the legacy of steel production in the Coatesville plate facility, where workers have been melting and pouring steel for over 200 years. Operations at the plant began in 1810, and the mill has been owned by various companies, including Bethlehem Steel, the International Steel Group (ISG), and ArcelorMittal USA. The EAF mill outside of Philadelphia currently has an annual capacity of 800,000 short tons of steel plate.
Union workers take pride in their work, Hall said, noting their importance in producing steel for things important to national security, like naval vessels, and infrastructure projects like the rebuilding of the I-95 bridge in Philadelphia that collapsed last year.
The rest of the conversation covered various topics related to the steel industry, including infrastructure, legislative policies, diversity and inclusion, and collaboration between industry, union, and the government.
Industry, union, and government cooperation
Addressing an audience that included members of the USW and the United Auto Workers (UAW), Goncalves acknowledged the challenges of maintaining positive relationships in the current political climate.
He further noted how vital collaboration is between labor unions and corporations, rather than an adversarial stance between them, in supporting the workforce and local communities.
Goncalves also called attention to the significance of the Biden administration’s dedication to workers’ rights: “I believe that he has our back,” he reiterated.
Tai spoke on the importance of aligning trade and labor policies to prioritize industries like steel.
She pointed out that globalization and a focus on maximizing shareholder profits have resulted in many companies ignoring the larger costs to Americans and their communities over time. So the administration, with its worker-centered trade policy, is trying to flip the script on that, she said.
She commented that the USMCA is “flipping the script on what a trade agreement can do.” A mechanism in the pact allows the US to hold companies accountable when they offshore American production but then set up shop in Mexico. The system has allowed more than 30,000 Mexican workers to empower themselves by joining a union, she said.
“We are just beginning to even the playing field in terms of the competition between America’s workers and Mexico’s workers,” Tai added. “This is what we’re talking about, stopping the pitting of workers against each other and actually creating mechanisms that allow for workers to support each other.”
Diversity & inclusion
Additionally, the conversation touched on the administration’s commitment to fostering an inclusive environment that rewards talent across all demographics. Cliffs is doing the same, Goncalves said, commenting how diversity and inclusion shouldn’t just be goals but also an integral part of workplace culture.
A diverse workplace reflects what the United States of America really is, he remarked.
Diversity, inclusion, and representation are essential in leadership positions at companies and in Congress, said Houlahan, who is also a veteran, an engineer, and a chemistry teacher. “What we need is diversity of all forms in all places,” she stressed.
“Unions know that when you open your doors up to be truly inclusive, that’s how you build the strongest organizations that you need,” Su added.
Leadership matters
Su added one more thing: “Leadership matters.”
She pointed out that Donald Trump had promised an ‘infrastructure week’ as president, but that never materialized. Meanwhile, the Biden administration has stepped up and made infrastructure investment happen.
It’s important to have policies that translate into what’s good for the steel industry, “And in order to do that, we have to have leadership to do it,” she noted. “The progress that we’ve made will only continue with leaders who understand how to use the tools that we have in an intelligent, thoughtful way.”
Unity of vision
Tai pointed out rare parallels among the five folks having the fireside chat.
Typically, “USTR and the Department of Labor are at loggerheads,” but she and Su have been working alongside each other with a unity of vision. “It’s rare, similarly, for labor and management to have the kind of relationship that you have here at Cliffs,” she added.
“You look at the five of us up here, and what is really unity of vision around this industry, around where the direction that we want our economy to go. And I just want to say it’s rare that you have this kind of consolation, and it’s extremely special. And when brought together, it can be extremely powerful,” Tai asserted.
Concluding the event, Goncalves reiterated Cliffs’ commitment to workers and communities, expressing hope for a collaborative future.
“Count on us, and let’s continue to work together,” he stated, reinforcing that a united approach among industry leaders, unions, and the government is vital for achieving lasting economic sustainability and a stronger middle class in America.
Laura Miller
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