U.S. Steel representatives met with United Steelworkers Union (USW) officials on Feb. 2 about the union’s recent grievance filings related to the proposed more than $14 billion sale of U.S. Steel to Japan-based Nippon Steel.
It was a “second-step grievance meeting,” where the merits of the grievances were discussed.
“While there was no resolution reached during the meeting, U.S. Steel will continue to participate in the process, maintaining that we not only complied with all requirements under the Basic Labor Agreements, but also that the proposed acquisition by Nippon Steel is the best path forward for all employees,” the Pittsburgh-based company said in a statement.
“We are confident the deal will provide increased certainty in the future of American steelmaking.”
Union representatives told members they had communicated with the White House about enforcing USW contracts with U.S. Steel, as well as the union’s national security concerns regarding the proposed sale to Nippon.
“We received personal assurances that President Joe Biden has our backs,“ the union told members. ”He’s long demonstrated his commitment to American workers and our union, and we’re grateful for his close attention to this situation.”
USW started the grievance process last month to enforce the successorship clause built into its basic labor agreements.
The grievances claim that U.S. Steel violated union contracts when it entered into a sale agreement with an affiliate of Nippon Steel.
US Company to Handle Union Contracts
Nippon Steel, a global corporation based in Tokyo, plans to have its Houston-based holding company, Nippon Steel North America (NSNA), assume the USW’s labor, pension, retiree benefits, and other agreements, the communication states.“Our successorship clause protects us against having our contracts pushed down to subsidiary companies,” the union told members. “Unlike U.S. Steel today, NSNA does not report its financial results publicly, leaving us with no proof of NSNA’s financial wherewithal to meet its obligations to active and retired USW members.”
The union indicated that Nippon Steel has promised that NSNA will stand behind the contract, although the union says it bargained for a contract that protects them from that situation.
Speaking after a meeting with the Teamsters Union last week, former President Donald Trump said he would block the deal “instantaneously.”
“We saved the steel industry,” he said. “Now, U.S. Steel is being bought by Japan. So terrible.”
President Biden’s national economic adviser, Lael Brainard, said in December 2023 that the deal deserves “serious scrutiny” in terms of its potential impact on national security and supply chain reliability.
The U.S. Steel sale to Nippon is expected to close in the second or third quarter of this year; however, the transaction could be delayed as the company needs approval by U.S. Steel shareholders, as well as regulatory approvals and a regulatory review.
