Union workers at Cleveland-Cliffs oppose transformer mandate
Members of the United Auto Workers union introduced a petition last week opposing a federal conservation proposal that would have a “devastating impact” on local steel production.
The petition — “Concerning Energy Efficient Standards for Distribution Transformers” — addresses the U.S. Department of Energy secretary, Jennifer Granholm, urging her department to reconsider a potential energy efficient standard for distribution transformers.
“The proposed rule will destroy the domestic supply chain for distribution transformers, will potentially shutter the Butler and Zanesville Works of Cleveland Cliffs, costing in excess of 1,500 jobs to American union workers,” the petition reads.
Posted Monday to Action Network, the petition is led by UAW Local 3303, representing more than 1,000 workers at Cleveland-Cliffs Butler Works. UAW Region 9 — representing Pennsylvania, New York and New Jersey — sponsored the posting.
The local union’s petition urges the DOE to withdraw the proposed rule and reevaluate the efficiency standard or “proceed with a standard that ensures continued use of GOES (grain-oriented electrical steel) in distribution transformers.”
“It would basically regulate out all grain-oriented production from the domestic market” said Jamie Sychak, president of the UAW Local 3303, of the DOE’s proposal.
UAW Local 3303 and Cleveland-Cliffs Butler Works are the sole manufacturer of grain-oriented electrical steel, or GOES, in the United States.
According to Sychak, GOES is the “preferred” core for the nation’s distribution transformers.
Cleveland-Cliffs Zanesville Works, a sister plant in Ohio represented by UAW Local 4104, provides finishing services for the steel.
However, the U.S. Department of Energy conservation program proposed last year — “Energy Conservation Standards for Distribution Transformers” — could see an alternative core replace GOES.
“Almost all transformers produced under the new standard would feature amorphous steel cores,” a DOE news release stated, “which are significantly more energy efficient than those made of traditional, grain-oriented electrical steel.”
The statement, released alongside the initial proposal on Dec. 28, 2022, anticipates adoption of amorphous metals, or AM, by 2027.
UAW Local 3303’s petition, however, raised concerns about AM implementation with the cores being “produced from materials imported from foreign countries” and “not domestically available for production.”
“Use of AM cores will result in reliance on imports to supply our electrical grid and leave the United States vulnerable to production and shipping issues,” the petition read.
And according to Sychak, the standard by which the efficiency of AM cores has been measured is “skewed.”
“With no load on the transformer — as it’s sitting there basically idling — it is a fraction of a percent more efficient,” he said. “But as soon as you begin to load that transformer by drawing electricity through it, it’s not. Grain-oriented electrical steel is.”
The DOE and Cleveland Cliffs did not respond to a request for comment on Friday.
In a Dec. 6 letter to Granholm, U.S. Reps. Mike Kelly, R-16th, and Chris Deluzio, D-17th, voiced bipartisan opposition to the proposed transformer mandate.
“Finalizing this rule would significantly impact the production of distribution transformers,” the letter read, “which are already difficult to obtain.”
The letter stated the proposed ruling would “jeopardize” the county’s GOES production, national security “and potentially cost over 1,500 American jobs.”
“We’ve had lots of support from local, state and federal politicians,” Sychak said.
Aside from Kelly and Deluzio’s letter, he said the union has seen support from U.S. Sens. Bob Casey, D-Pa., John Fetterman, D-Pa., Joe Manchin, D-W.Va., and Sherrod Brown, D-Ohio.
Additionally, Sychak said state Rep. Marci Mustello, R-11th; County Commissioner Kevin Boozel and Butler township commissioner Dave Zarnick also have offered support.
“It’s bipartisan — a lot of politicians from both sides of the fence,” Sychak said. “This isn’t a Republican or a Democrat issue; the people ‘in the know’ can see that this is not the way to go.”
In a June 1 letter to Granholm, 47 senators signed in bipartisan opposition to the proposal, stating the national transformer infrastructure was already operating at “97.7% efficiency.”
Sychak said the proposal’s open-comment period this summer also received a variety of responses opposing the change.
“For a litany of reasons — not the least of which is supply chain constraints,” he said. “If there’s supply-chain constraints with grain-oriented electrical steel, it’s exponentially worse for amorphous metal, and that’s at great taxpayer expense.”
As of Dec. 15, the UAW Local 3303’s petition had 2,407 signatures, which is 793 shy of its 3,200-signature goal.
Sychak said the petition is available to sign through the UAW Region 9’s Facebook page, and will remain available beyond its stated goal.
“We thank you for your consideration and urge in the strongest possible terms consideration for the impact of this proposed standard on workers, the United States economy, and on the United States national security,” it reads.
