American steelworkers spoke with FOX Business’ Lydia Hu outside Pittsburgh, where US Steel’s headquarters may soon be handed over to Japan-based Nippon.
An arbitration board on Wednesday ruled that Nippon Steel’s proposed $14.9 billion purchase of US Steel complied with the requirements of the company’s labor agreement with United Steelworkers (USW) union.removing a potential obstacle to the deal finally proceeding.
An arbitration board, appointed by US Steel and the union to resolve disputes, found that the company met its obligations under the provisions of its labor contract with USW, despite the union’s objections.
US Steel said the arbitrators determined that Nippon Steel recognized USW as the bargaining representative of its workers at the company, made reasonable assurances that it was willing and financially able to honor US Steel’s obligations to USW, and assumed all US Steel contracts. and workers representing USW.
The decision removes a potential obstacle Acquisition of US Steel by Nippon Steelalthough the deal is still under legal review by the Committee on Foreign Investment in the US (CFIUS), which looks into national security concerns related to the project.
US STEEL EXECUTIVE SAYS COMPANY COULD WEAR BILLIONS IN LIENS IF PROPOSED $14B SALE TO NIPPON STEEL FAILS.
US Steel has warned that it may be forced to close steel plants if its deal with Nippon Steel fails, given Nippon’s promise to invest in Mon Valley Works and Gary Works. (Justin Merriman/Bloomberg via Getty Images/Getty Images)
“With the arbitration process behind us, we look forward to moving forward with our pending work with Nippon Steel,” US Steel CEO David Burritt said in a statement. “Through significant investment and contractual commitments from Nippon Steel, we will protect and grow US Steel for the benefit of our employees, communities and customers.”
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| X | Rating of the company UNITED STATES STEEL CORP. | 38.23 | +0.42 |
+1.11% |
| NPSCY | Company NIPPON STEEL CORP. | 7.52 | +0.08 |
+1.08% |
The company added, “US Steel and Nippon Steel continue to make progress with the review of US regulations regarding the pending transaction and are working to close the transaction by the end of this year.”
US STEELWORKERS ASK TO SEND ‘ALL WE WORKED’ WHILE CONSIDERING SALE TO FOREIGN COMPANY.
The United Steelworkers union continues to oppose the acquisition of US Steel by Nippon Steel, despite the arbitration board’s decision. (Justin Merriman/Bloomberg via Getty Images/Getty Images)
The USW said in a press release that it had received the arbitration board’s decision and that we “strongly disagree with the outcome.”
“The arbitrators have accepted Nippon Steel’s high-level statement that it will adopt the Basic Labor Agreement, despite the obvious ways its North American subsidiary is using to protect itself from our contracts,” the USW said. “Nippon’s commitment to our facilities and operations remains as uncertain as ever, too managers in Tokyo You can still change US Steel’s business plans and cancel them at any time.”
“We are clearly disappointed by this decision, but it does nothing to change our opposition to the agreement or our determination to fight for our jobs and communities that depend on this agreement,” he added.
NIPPON STEEL PUSHES BACK ON BIDEN ADMIN’S NATIONAL SECURITY CONCERNS OVER SEASONAL BUYING.
Nippon Steel says its commitment to USW exceeded what was required under the union’s contract with US Steel. (Justin Merriman/Bloomberg via Getty Images/Getty Images)
Nippon Steel told FOX Business in a statement that it welcomes the arbitration board’s finding that it complies with the law. Basic Labor Agreement (BLA) between US Steel and USW.
“We remain focused on building a productive relationship with USW, including fulfilling our obligations that go beyond what is currently required in the existing BLA and fulfilling our mission to protect and grow US Steel for the benefit of its employees, its customers, the communities in which US Steel operates, and American industries,” the company said.
The proposed agreement has attracted opposition President Biden. Vice President Kamala Harris and former President Trump also said they would block the deal. It is unclear when the CFIUS review will conclude and Nippon Steel’s efforts to mitigate national security concerns about its purchase of US Steel to prevent the president from blocking the deal.
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US Steel warned earlier this month that it needed the deal to pass or be forced to do nothing steel plants in Pittsburgh in the Monongahela Valley and in Gary, Indiana, which Nippon Steel has promised to develop with an investment of $2.7 billion if the project goes ahead.
US Steel also warned that it could be forced to move its headquarters to Pittsburgh if those plants do not operate.
FOX Business’ Lydia Hu contributed to this report.