Opposition to U.S. Steel Sale

By John Geddie

(Reuters) – The head of a powerful labor union opposing U.S. Steel's sale to Japan's Nippon Steel stated that he has not received assurances about the long-term success of the strategic U.S. firm.

Nippon Steel's $15 billion takeover bid has faced criticism from both President Joe Biden and President-elect Donald Trump and is currently under national security review by the CFIUS.

David McCall, head of the United Steelworkers union, expressed concerns as Nippon Steel released details of commitments to gain the union's support, including job security and facility investments.

A primary concern for McCall is that Nippon may import steel from its international mills, which he believes would jeopardize a company crucial to U.S. history and defense, including its role in building the Empire State Building.

McCall noted, "There’s been nothing that would assure us that there’s long-term viability in the operations." He emphasized that Nippon Steel seeks a return on its investment but must not erode U.S. Steel's facilities, allowing them to import products from abroad.

Nippon Steel has denied intentions to import steel from its mills after the acquisition, asserting aims to integrate into the U.S. market, vital for future growth.

Both Nippon Steel and U.S. Steel have not yet commented on this article.

McCall also condemned Nippon Steel for failing to intervene amid what he described as “bullying” from U.S. Steel CEO David Burritt, who threatened to close steel mills and move the company's headquarters if the sale fell through.

"He’s like a schoolyard bully demanding your lunch money,” McCall remarked, adding that such threats have frightened union members.

Nippon Steel is working swiftly to finalize the deal before Donald Trump, who has pledged to block the transaction, assumes office on January 20.