Making Pennsylvania Competitive for Manufacturing Jobs

and for Capital Investment at Home

Majority Policy Committee Utility Stabilization Hearing
Thursday, May 31, 2007
John DeFazio, United Steelworkers

My name is John DeFazio and I am Director of District 10 of the United Steelworkers.  Thank you for including my comments in this important hearing.

I am here today to express my support for changes to improve Pennsylvania’s electricity price competitiveness so that we can retain and grow critical manufacturing jobs here in Southwestern Pennsylvania.  The United Steelworkers will support legislation to allow large industrial electricity users to enter into long-term contracts with their local utilities.  This change will increase the global competitiveness of our local employers.

Electricity is a major component of modern steel production and of many industrial processes.  The current situation in Pennsylvania is putting thousands of well paying manufacturing jobs at risk. 

The United Steelworkers counts 1.2 million working and retired members in the United States, Canada and the Caribbean.  Our roots are in southwestern Pennsylvania, we are based in the region and the union hopes to have a strong future in the Commonwealth.  For manufacturing jobs to remain in Pennsylvania, the problem of uncompetitive electricity prices must be addressed.  Our labor force is the best in the world, and gives the companies that employ us a competitive advantage.  However, the companies our members work for are still going to invest in other states and countries instead of Pennsylvania if they cannot secure predictable, competitive electricity prices.  If we lose capital investments to other states, we know that both construction and permanent jobs will soon follow. 

As you have heard today, we are facing this dilemma today, as one of our largest PA employers, Allegheny Technologies considers the largest capital project in it’s 100+ year history.  If that investment is made outside of PA, over time we stand to lose 3000 jobs.  The problem is real, it is facing us now, and it needs to be addressed.

Governor Rendell recognizes the need for this change and specifically called for a solution when he announced his Energy Independence Strategy.  We add our organization’s voice to those who already realize the need to improve how Pennsylvania is addressing the needs of large industrial electricity users in a deregulated electricity market.

The United Steelworkers want to see a strong manufacturing sector in Pennsylvania.  We ask for your support to remove this competitive disadvantage and secure the future of thousands of our hard working members.

Thank you.