A Controversial Agreement Keeps Workers Employed While Production Halts
The shutdown of steel production at US Steel’s Granite City Works mill in Illinois exposes both the promise and limitations of President Trump’s unprecedented intervention in corporate America. Despite halting steel-making operations at the end of October, all 800 workers at the facility will retain their positions through at least 2027, thanks to a unique “golden share” agreement that gives Trump personal veto power over major corporate decisions.
This arrangement reveals the complex reality facing American manufacturing today. While production stops, paychecks continue – a situation that raises fundamental questions about government intervention in private industry and the future of American steelmaking.
The Deal That Changed Everything
The story begins with a corporate takeover that initially faced bipartisan opposition. When Japanese steelmaker Nippon Steel announced its $15 billion bid to purchase US Steel in December 2023, both President Biden and then-candidate Trump strongly opposed the foreign acquisition.
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company,” Trump declared on Truth Social in December 2024. “As President, I will block this deal from happening. Buyer Beware!!!”
Yet by June 2025, Trump had completely reversed course, approving the merger with unprecedented conditions that fundamentally altered the relationship between government and private industry.
Understanding the “Golden Share” Power
The centerpiece of Trump’s approval was what the White House termed a “golden share” – an arrangement that gives the president extraordinary control over US Steel’s operations. According to CNBC’s analysis of SEC filings, this golden share grants Trump veto power over:
- Changing US Steel’s name or relocating headquarters from Pittsburgh
- Closing, idling, or selling production facilities through 2035
- Reducing employee base salaries through 2030
- Altering the $10.8 billion capital investment timeline
- Making acquisitions that compete with US Steel
“We have a golden share, which I control, or [the] president controls,” Trump explained to reporters. “That gives you total control.”
Granite City: A Community Caught in Transition
The Granite City Works mill represents both the promise and peril of this arrangement. Once employing 2,000 workers when both blast furnaces operated at full capacity, the facility has steadily contracted. The first blast furnace shut down in 2019, the second in 2023, leaving the mill to process steel slabs manufactured elsewhere.
Now, even that limited operation ends in November. Yet the 800 remaining workers – 700 hourly employees represented by the United Steelworkers union and 100 salaried staff – will continue drawing paychecks for maintaining equipment and keeping the facility ready for potential restart.
“US Steel will optimize its footprint by focusing on producing and processing steel slabs at the Mon Valley (Pennsylvania) Works and Gary (Indiana) Works,” the company stated. “As a result of this decision, US Steel will not lay off any Granite City Works employees nor adjust their pay rate.”
The Politics of Steel and Jobs
The Granite City situation reflects broader political tensions surrounding American manufacturing. Trump’s 2018 visit to the mill, where he touted new steel tariffs, helped restart the blast furnaces and earned significant working-class support in the region.
“The deal got better and better and better for the workers. I’m going to be watching over it. It’s going to be great,” Trump promised at a May rally. “They’re going to be here for a long time… There will be no outsourcing and no layoffs whatsoever.”
However, the clock is ticking. The job protection agreement only extends through June 2027 for Granite City – eight years shorter than protections for other US Steel facilities that run through 2035.
Union Concerns and Community Impact
The United Steelworkers union remains skeptical of both the deal and its long-term implications. “Issuing press releases and making political speeches is easy,” the union stated. “Binding commitments are hard. The devil is always in the details, and that is especially true with a bad actor like Nippon Steel.”
Local officials share these concerns. Granite City Mayor Mike Parkinson, who wrote directly to Trump seeking investment guarantees, expressed frustration with the mill’s apparent exclusion from major investment plans.
“We have workers who are losing hope, workers who once were supporters of the Democratic Party and became supporters of you, Mr. President, for what you did for them in 2018,” Parkinson wrote in his letter to Trump.
Economic Implications and Precedent
The arrangement creates an unprecedented model of government intervention in private industry. While stopping short of nationalization, the golden share gives Trump personal control over key corporate decisions – a level of government involvement that would typically be associated with state-owned enterprises in other countries.
This intervention reflects broader trends in industrial policy, as governments worldwide reassess their relationships with strategic industries. The steel sector, crucial for national security and infrastructure, has become a particular focus of such policies.
Looking Forward: Sustainability Questions
The fundamental question remains: Is paying workers to maintain idle equipment a sustainable long-term solution? While the arrangement provides immediate job security and community stability, it also highlights the broader challenges facing American steel production.
Nippon Steel’s broader investment plans focus heavily on Big River Steel in Arkansas, a newer, largely non-unionized facility. Meanwhile, traditional union strongholds like Granite City face an uncertain future despite the temporary protections.
Industry experts note that the global steel market continues to face overcapacity issues, particularly with Chinese production affecting worldwide prices. Whether Granite City can return to full production depends on both market conditions and the political will to support traditional steelmaking communities.
A Test of Political Promises
The Granite City situation serves as a real-time test of campaign promises meeting economic reality. Trump’s ability to secure job protections demonstrates the power of presidential intervention in corporate decisions. However, the limited timeline and uncertainty about future production reveal the constraints of such agreements.
As one longtime steelworker noted, “We’re not getting that same vibe that we were in 2018. I just don’t feel like there’s much pressure politically on that for this plant.”
The Path Ahead
With production halted but paychecks continuing, Granite City Works exists in a unique limbo that reflects broader tensions in American industrial policy. The arrangement provides breathing room for workers and communities while avoiding the immediate political costs of mass layoffs.
However, the 2027 deadline approaches faster than many realize. Whether this breathing room translates into genuine industrial renewal or simply delays inevitable restructuring will determine the ultimate success of Trump’s unprecedented intervention.
The stakes extend far beyond one Illinois mill. As America grapples with maintaining industrial capacity in a globalized economy, the Granite City experiment offers both hope and cautionary lessons about the limits of political solutions to economic challenges. The question isn’t just whether 800 jobs can be saved – it’s whether American steelmaking can find a sustainable path forward in the 21st century.
