USW Firmly Opposes Nippon Takeover: Concerns Over Security and Jobs

In a letter to Treasury Secretary Scott Bessent, USW President David McCall stated that the union believes neither the proposed concessions nor the assurances given so far are sufficient to justify the $15 billion deal.

“We remain firmly opposed to this acquisition,” McCall said, citing serious concerns about national security and the long-term economic stability of the U.S. steel industry.

Since former President Joe Biden intervened to block the deal in January, the union's concerns have only grown. Among the reasons are Nippon’s business activities in China, which, according to the USW, contribute to global overcapacity, as well as a lack of commitments to maintain production at U.S. manufacturing sites.

The debate has further intensified following a recent decision by the U.S. Department of Commerce to impose preliminary anti-dumping duties of 205% on certain steel products from Nippon. The union is also wary of reports that Nippon may plan to divest parts of U.S. Steel’s assets.

Re-elected U.S. President Donald Trump recently indicated that he would not object to Nippon taking a minority stake in U.S. Steel, suggesting he may be open to a revised deal structure. He has since instructed the Committee on Foreign Investment in the United States (CFIUS) to conduct a new review of the transaction to determine whether further action is warranted.

While Nippon and U.S. Steel claim to be working closely with the administration to secure a meaningful investment, the union’s resistance remains a key obstacle to the completion of the proposed acquisition.

Source: United Steelworkers Foto: Fotolia