The United Steelworkers Union (USW) recently met with U.S. Steel representatives about the proposed $14 billion sale of U.S. Steel to Japan-based Nippon Steel. This meeting was called the “second step grievance meeting” and involved discussions about the recent grievance filings made by the union. The company stated that while there was no resolution reached during the meeting, they will continue to participate in the process, maintaining that the proposed acquisition by Nippon Steel is the best path forward for all employees.
Meanwhile, the union representatives relayed to their members that they had communicated with the White House regarding the enforcement of USW contracts with U.S. Steel and its national security concerns about the proposed sale to Nippon. They claimed to have “received personal assurances that President Joe Biden has our backs.”
The USW started the grievance process last month to enforce the successorship clause built into its basic labor agreements. The grievances allege that U.S. Steel violated union contracts when it entered into a sale agreement with an affiliate of Nippon Steel Corp.
The union stated that Nippon Steel’s Houston-based holding company, Nippon Steel North America (NSNA), would be assuming the USW labor, pension, retiree benefits, and other agreements instead of taking on the union’s contracts directly. The union expressed concerns about the financial capacity of NSNA to meet its obligations to active and retired USW members and argued that they bargained for a contract that protects them from this situation.
Former President Donald Trump expressed his intention to block the deal, and President Biden’s national economic advisor, Lael Brainard, said in December 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, dependent on approvals from shareholders and regulatory authorities.