(New York) The acquisition of US Steel by its competitor Nippon Steel meets the conditions set by the USW steelworkers union in the current company agreement, arbitrators appointed by the two parties said on Wednesday.
The USW immediately expressed its disagreement with these conclusions in a statement.
The opinion presented by the arbitrators does not resolve the question of the examination of this $14.9 billion acquisition by the American authorities in the light of national security.
The Committee on Foreign Investment in the United States (CFIUS) must still submit its recommendations to US President Joe Biden, who will decide.
This deadline was pushed back until after the election, as the issue became highly political during the presidential campaign, with both main candidates saying they were hostile to the project, as was Joe Biden.
The union is opposed to the takeover, which it considers contrary to the interests of employees and the United States.
Immediately after the project was announced in December, the USW questioned Nippon Steel’s ability to honor commitments made by US Steel in the event of a change in ownership.
However, the arbitrators appointed by the company and the union considered, in their decision, that Nippon Steel had indeed made commitments which respected the transfer clauses, according to a press release.
They notably mentioned the written promise to invest at least 1.4 billion dollars in the modernization of sites as well as not to proceed with any layoffs or site closures until the expiration of the social agreement in force, i.e. in 2026.
Nippon Steel also agreed to recognize the USW as a negotiating partner in the enterprise agreement negotiations.
“The arbitrators took Nippon Steel’s statements at face value that they would honor the labor agreement, while trying to use their U.S. subsidiary to create a separation from that agreement,” the union argued.
Nippon Steel’s commitments “are more uncertain than ever,” according to the USW, which reaffirmed its “opposition to this transaction.” The union wants, like Donald Trump, Joe Biden and Kamala Harris, for US Steel to remain controlled by American interests.
“This transaction is satisfactory to all stakeholders, not just shareholders,” US Steel CEO David Burritt said in an interview with CNBC on Tuesday.
“It would be a good thing if they (the USW) took the time to understand it better,” he added.