An arbitration board has allowed US Steel to move ahead with its plan to be bought by Nippon Steel, even though many workers are against it.
The board was chosen by both US Steel and the United Steelworkers (USW) union to help solve their disagreements.
Arbitration Board Clears Path for US Steel and Nippon Steel Deal
On Wednesday (September 25), the board said that US Steel has done everything needed according to the successorship clause in its work agreement with the union. This means that no more steps are necessary to finish the deal with Nippon Steel.
Back in January, the USW had problems with the deal and filed complaints, saying that the successorship clause was not followed. The union worried that Nippon Steel might not fully understand what it promised to do for steelworkers, retirees, and the local communities.
According to AP News, they expressed concerns about how well their labor agreements would be followed, wanting to know more about Nippon's financial situation and how it might affect national security, infrastructure, and supply chains.
Last month, the arbitration board looked at the evidence and arguments from both US Steel and the USW. After considering everything, the board stated that Nippon Steel had provided strong written promises to meet the requirements of the successorship clause.
They decided that no extra actions were needed from Nippon Steel. The promises included Nippon Steel agreeing to invest at least $1.4 billion into facilities represented by the USW, committing not to lay off workers or close plants during the labor agreement, and making sure US Steel's interests are protected in trade matters.
Now that the arbitration process is over, US Steel President and CEO David Burritt said they are ready to move forward with their planned deal with Nippon Steel. Burritt showed excitement about what comes next, indicating that US Steel is eager to finalize the deal after resolving the arbitration.
However, the USW responded by saying they were not happy with the board's decision. They still worry about whether Nippon Steel will truly take care of their jobs and facilities, especially since the decisions will be made by leaders in Tokyo, Japan.
This could mean changes to US Steel's business strategies that could negatively affect workers and their communities. Although they were upset about the ruling, the USW reaffirmed their opposition to the deal and stressed their commitment to standing up for their workers and communities.
Related Article: Visa Faces Legal Action Over Alleged Monopoly and $7 Billion in Annual Debit Fees
Political Opposition to Nippon Steel's Acquisition of US Steel
On the political side, President Joe Biden has expressed that he does not agree with Nippon Steel's acquisition of US Steel. But the federal government hasn't acted yet to stop the deal.
Earlier this month, White House officials did not rule out that Biden might take action to block the acquisition, but important papers needed from the Committee on Foreign Investment in the United States had not been submitted to the White House yet.
The acquisition is also important in Pennsylvania, where US Steel is based in Pittsburgh. Pennsylvania is a key state for the upcoming presidential election, and both Vice President Kamala Harris and former President Donald Trump see it as important for their campaigns in November.
Many people, including Biden, Harris, and Trump, are against the acquisition. On Wednesday, Harris talked about it during a speech at the Economic Club of Pittsburgh, where she promised to support an economy that helps both businesses and middle-class workers, according to ABC News.
Related Article: Lawmakers Grill Novo Nordisk Over 'Outrageous' Prices for Ozempic and Wegovy in Senate Hearing
