Schumer Joins Chorus Against MTA’s Chinese Steel Decision
Senator Charles Schumer has joined those critical of the MTA for outsourcing a key portion of their Verrazano-Narrows Bridge restoration project to a Chinese company. In a press release, Schumer is arguing that, by undercutting American steel manufacturers to save money on project costs, the MTA is actually doing more harm by driving up the price of steel and causing harm to the American economy.
As we’ve previously reported, the MTA was adamant in defending their actions regarding the use of Chinese labor in the steel fabrication phase of their restoration project. Of the $235 million being spent on the project, the MTA insisted that only a small portion, $34 million, would be spent on Chinese labor. They also claimed that despite an extensive search, they couldn’t find a US Steel manufacturer who could produce the steel panels needed for the project.
Schumer warned that dealing with Chinese state-owned businesses was a dangerous game with dire economic and environmental consequences.
“State-owned enterprises like Ansteel have an unfair, artificial, competitive advantage against American firms, and in the future the MTA should change its processes to account for this unfair advantage, and do everything in its power to avoid purchasing from these companies,” Schumer said in the release. “If we continue to source to Chinese companies based entirely on bid pricing, they will always win – with the level of government support and overproduction it’s impossible to beat their prices. This is causing a global race to the bottom on steel prices, a budding environmental catastrophe and the threatening of steel production not just in the U.S. but worldwide. If American government entities like the MTA don’t support a level playing field for American steel made by American steelworkers, no one will.”
While the MTA’s deal to employ the Chinese has already been set in place, Schumer urged the MTA to think twice about using foreign labor in the future in a letter to MTA Chairman Tom Pendergast.
“In the future we hope that the Metropolitan Transit Authority considers the broad implications for the domestic market when making sourcing decisions. It is our hope that in the future MTA will consider the profound impact that their purchasing power has on supporting domestic manufacturing against unscrupulous foreign and state-owned companies,” Schumer wrote.
State Senator Diane Savino, who was among the first to draw attention to the issue, praised Schumer for lending his voice towards the criticism directed at the MTA.
“I want to thank Senator Schumer for his leadership on this issue. As I have contended since this issue arose, the MTA must do a better job to ensure that they use the best product available at a reasonable price. That being said this also needs to be done on a fair playing field and I urge the MTA to do its best in the future to re-examine their bidding process,” Savino said.