Recent reports shows that the head of a labor union opposing the sale of U.S. Steel to Japan’s Nippon Steel commented that he has not received assurances that the to-be owners are committed to ensuring the lasting success of the strategic U.S. firm.
Nippon Steel’s $15 billion takeover bid, criticized by President Joe Biden and President-elect Donald Trump, will be subjected to a national security review by the secretive government panel CFIUS later this month.
David McCall, head of the United Steelworkers union, spoke with Reuters on Monday following Nippon Steel’s disclosure of commitments aimed at securing the union’s support, including assurances on job security and facility investments.
McCall’s primary concern is that Nippon might import steel into the U.S. from its international mills, potentially undermining a company with a storied legacy that helped build the Empire State Building and supplying arms to Allied forces in World War two.
“When we’ve had discussions with them there’s been nothing that would assure us that there’s a long-term viability in the operations,” McCall told Reuters
“Nippon Steel wants a return on that investment, and I understand that, but it can’t be harvesting our facilities and letting them slowly but surely over a period of time deteriorate so that they can then bring product in from their other facilities around the world and have access to our market.”
Nippon Steel has previously denied plans to import steel from its overseas mills once the deal is finalised, emphasizing its ambition to establish itself as an “insider” in the U.S., a key market for its future growth.
Neither Nippon Steel nor U.S. Steel responded immediately to requests for comment on this matter.
McCall also criticised the Japanese suitors for not trying to stop or intervene in what he called “bullying” from U.S. Steel CEO David Burritt to close the deal.