The United Steelworkers (USW) union is disappointed by a recent arbitration board’s ruling that Pittsburgh-based U. S. Steel Corp. may move forward with its proposed acquisition by Nippon Steel.
USW said in a statement on Wednesday that it disagreed with the arbitration board’s ruling, which also is not likely to sit well with presidential candidates who have spoken out against the deal, as well.
“Nippon’s commitment to our facilities and jobs remains as uncertain as ever, and executives in Tokyo can still change U. S. Steel’s business plans and wipe them away at any moment,” the union said in a statement Wednesday. “We’re clearly disappointed with the decision, but it does nothing to change our opposition to the deal or our resolve to fight for our jobs and communities that hang in the balance in this transaction.”
The board, which was jointly chosen by U. S. Steel and the USW to decide disputes between them, said U. S. Steel has satisfied each of the conditions of the successorship clause of its basic labor agreement (BLA) with the union.
No further action under the agreement is necessary for U. S. Steel to proceed with the closing of the proposed transaction with Nippon Steel, the board ruled.
“We commend the Board of Arbitration for its thorough review of the USW’s allegations and are pleased with its decision that U. S. Steel and Nippon Steel have fully complied with the BLA,” said Karl Kocsis, vice president and chief labor relations officer for U. S. Steel. “U. S. Steel always has and always will continue to have the utmost regard for our union-represented employees and the role of the USW.”
The union filed a series of grievances on Jan. 12 alleging that the successorship clause had not been satisfied. USW also has expressed concern about the enforcement of its labor agreements, having transparency into Nippon’s finances, as well as national defense, infrastructure, and supply-chain issues.
On Aug. 15, the Board of Arbitration heard evidence and arguments from both U. S. Steel and the USW on the matter before determining on Sept. 25 that the successorship clause has been satisfied and that, as required by the BLA, Nippon Steel has recognized the USW as the bargaining representative for USW-represented employees at U. S. Steel.
Additionally, the board said Nippon Steel also provided reasonable assurances that it has both the willingness and financial wherewithal to honor the commitments in the agreements between U. S. Steel and the USW applicable to USW-represented employees; and assumed all USW agreements that are applicable to USW-represented employees at U. S. Steel.
In making this decision, the Board of Arbitration recognized the repeated written commitments Nippon Steel made to fulfill the requirements of the successorship clause and that no further actions by Nippon Steel were required.
In support of its decision, the board also cited Nippon Steel’s written commitments, including a commitment to invest no less than $1.4 billion in USW-represented facilities, not to conduct layoffs or plant closings during the term of the BLA, and to protect the best interests of U. S. Steel in trade matters.
David Burritt, president and CEO of U. S. Steel, said that now that the arbitration process is finished, the company looks forward to moving ahead with the pending transaction with Nippon Steel.
“With the significant investments and contractual commitments from Nippon Steel, we will protect and grow U. S. Steel for the benefit of our employees, communities, and customers,” Burritt said. “We look forward to collaborative discussions with the USW and all our stakeholders.”
U. S. Steel and Nippon Steel continue working through U.S. regulatory reviews of the pending transaction and hope to close the deal by the end of the year.
Meanwhile, Nippon’s proposed takeover of U. S. Steel has become a contentious political issue in Pennsylvania, a state that both Vice President Kamala Harris and Donald Trump view as a must-win in November’s presidential election. They both oppose the deal, as does President Joe Biden, who may attempt to formally block it.