By MATT BECKMAN New York TIMES NEW YORK (Reuters) – U.S. President Donald Trump is proposing to slash the number of steelworkers hired in manufacturing and other manufacturing sectors in a move that could have serious consequences for the nation’s economy, including the steel industry, according to a draft plan he has released on Monday.
The White House released a draft of Trump’s industrial restructuring plan on Monday, which would eliminate more than 700,000 steel jobs in the United States and force some of the nations largest employers to lay off as many as 890,000 workers.
The plan, which was drafted by Trump’s National Economic Council, said the White House could create about 500,000 jobs in manufacturing by 2021 and another 2.3 million jobs in other manufacturing over the same period, the Times of London reported.
The blueprint calls for consolidating the manufacturing sector by eliminating hundreds of thousands of jobs, eliminating or significantly reducing production capacity, reducing pay for some workers and limiting flexibility in how companies operate, the newspaper said.
“Our country’s future depends on the success of our manufacturing industry,” Trump said in a statement, adding that he “has long supported the revitalization of America’s manufacturing sector, which provides good-paying jobs for millions of hard-working Americans.”
The plan would also eliminate nearly 4,000 government jobs and about 6,000 federal government-sponsored enterprises, the paper reported.
Trump’s plan would reduce the amount of federal government support for the steel manufacturing industry by a record amount, according in a White House analysis, and the administration said the cut could amount to as much as $7 billion.
The proposed plan calls for laying off workers in the steel and aluminum industries and cutting back on federal assistance for other industries, including energy, housing, and health care, the White Star Line steel maker said in an emailed statement.
The president’s plan, titled “Industrial Restructuring for America,” would also remove at least $1.2 trillion from the federal deficit over the next decade.
The steel industry is in the midst of a labor dispute with the U.I.S., the United Steelworkers union, which has accused the Trump administration of “massive overreach” in its restructuring plans, saying it would destroy jobs and raise prices.
“We’re not the only industry that is going to suffer,” United Steel Workers Local 2000 President John Canfield said in May.
“Our industry is going out of business.”
Trump has pledged to revive the U,I.s steel industry during his first 100 days in office, which began in January.
The United Steel and Manufacturing Workers Union also called for Trump to withdraw his proposed rule on import quotas that would have eliminated more than a third of the U’s steel production capacity and hurt U.s exports.
Trump has been criticized by the business community for the UI’s plan and for proposing to eliminate a program that provides government loans to companies to help them start up.
(Reporting by Maggie Haberman in New York; Editing by Kevin Drawbaugh and Eric Beech)