Ron Bloom

Assistant to the President for Manufacturing Policy (since January 2011)

(Melina Mara/TWP)

Why He Matters

Bloom has built a strong reputation in labor circles as an expert negotiator and former special assistant to the president of the United Steelworkers (USW). His Harvard University MBA and investment banker background made him a rare commodity for a labor negotiator, but has helped him drive a hard bargain at the table with business leaders.

In January 2011, new White House chief of staff William Daley announced that Bloom would move to the White House to become assistant to the president for manufacturing policy.

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Background

At a Glance

Career History: Chief Adviser to the Treasury Department on the Auto Industry (July 2009 to January 2011); Senior adviser for the Manufacturing Industry (September 2009 to January 2011); Senior adviser for the Treasury Department on the auto industry (Feb. 2009 to January 2011); United Steelworkers Union, special assistant to the president (1996 to 2009); Keilin & Bloom, founding member (1990 to 1996); Lazard Freres & Co. (1985 to 1990)
Hometown: New York, N.Y.

Alma Mater: Weslyan University, 1977; Harvard University, MBA, 1985
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Path to Power

Bloom was born in New York when it "was a strong union town," according to the Pittsburgh Post-Gazette. "Growing up, the sort of issues of the day always included discussion of civil rights, social justice, the labor movement," said Bloom.

Bloom's father worked at a non-profit organization, while Bloom's mother taught school. Bloom's labor roots came from his aunt, who helped lead a teacher's union. After he graduated from Wesleyan University in 1977, Bloom started working for the political organizing group the Jewish Labor Committee before joining the Service Employees International Union (SEIU).

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The Issues

Bloom's job is to help save the struggling U.S. auto industry, while also rethinking jobs across the entire U.S. manufacturing sector. He has the rare advantage of having been an investment banker who has worked for organized labor.

Auto Task Force

Prior to taking on the manufacturing role, Bloom was involved in a complete revamp of the U.S. auto industry that was controversial and politically-sensitive. In March 2009, the task force that Chrysler should receive 30 days to negotiate a merger with the Italian car company Fiat. For General Motors, it recommended allowing the Detroit icon to continue restructuring efforts for 60 more days. In April 2009, Chrysler filed for bankruptcy, and 31 days later a bankruptcy court judge approved the sale of the company to Fiat. GM filed for bankruptcy on June 1, 2009. The Treasury Department will add an additional $30 billion in financing to GM and take a 60 percent stake in the car company.

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A tricky part of the GM bankruptcy decision was how to negotiate with the United Auto Workers union (UAW), which represents GM workers. The UAW's retiree health fund was owed $20 billion from GM. With the help of Bloom, the UAW agreed to take a 17.5 percent stake in GM, plus it will receive $9 billion in notes and preferred stock.

Wheeling-Pitt. Merger Discussions

In 2006, Brazil's steel company Companhia Siderrgica Nacional (CSN) was negotiating a merger with Wheeling-Pittsburgh Corp. The two companies had nearly finished the deal when the USW decided to block the merger and find a buyer more likely to adhere to union demands. Bloom and USW president Leo Gerard thought the bulk of the deal's benefits would go to CSN instead of employees. With the help of Bloom, the USW found Esmark, a Chicago-based steel-distribution company that offered to layoff zero workers if the union agreed to allow Esmark to import steel from Ukraine.

The USW supported Esmark as it led a proxy fight to gain control of the board at Wheeling-Pitt. Esmark succeeded in November 2006. "We turned the entire board over in one day -- little old Steelworkers and little old Esmark," said Bloom. Soon after, Esmark merged with Wheeling-Pitt.

Goodyear Tire & Rubber Co.

In September 2003, Bloom led contract negotiations with Goodyear Tire. The company had faced a tough 2002, losing $1.1 billion to tire manufacturers selling cheap products with the help of labor in low-wage countries. Plus, Goodyear had dug itself a hole, creating $5 billion worth of debt due to unsuccessful acquisitions or new products. Bloom had to handle the negotiation, which would affect 19,000 jobs.

As with many of Bloom's negotiations, he had to cede some turf to the struggling company, but, by doing so, he saved a number of jobs. In the Goodyear example, the USW agreed to allow the tire manufacturer to cut labor costs $1.15 billion over three years, including letting go 3,000 employees. Goodyear promised to continue to invest in all but two of its U.S. factories.

The Network

On the Auto Task Force, Bloom reported directly to Treasury Secretary Timothy Geithner and former National Economic Council Director Lawrence Summers. Sperling, Bernstein, Heinzerling and Austan Goolsbee, then staff director of the Economic Recovery Advisory Board, all helped on the task force, as well. He is likely to work with the same players in overseeing the manufacturing sector.

Bloom worked for 12 years at the USW, including four under USW president Leo Gerard.

Campaign Contributions

While Bloom worked for the USW, he has donated $6,350 since 2000. All of his donations went to Democratic campaigns, including $2,300 to President Barack Obama in 2008.

Additional Resources