Union Raised Concerns over “Golden Share” Arrangement in U.S. Steel- Nippon Steel Deal

SEATTLE (Scrap Monster): The United Steelworkers union raised concerns over the deal sealed by President Donald Trump in acquisition of Pittsburgh-based steelmaker United States Steel Corporation (U.S. Steel) by the Japanese Nippon Steel. This comes amidst revealing of further details on how the U.S. administration intends to have significant influence over the operations of the steelmaker.

Over the past few days, U.S. administration officials have been providing additional insights into the ‘golden share” arrangement which provides extraordinary amount of influence over the U.S. steelmaker. It would give President Trump and his successors a permanent stake in U.S. Steel, significant sway over its board and veto power over a wide array of company actions. Meanwhile, the full terms are yet to be made clear.

In a letter posted Sunday, the United Steelworkers Union, the union representing U.S. Steel employees, raised questions about the deal made by Trump, who had pledged to block the acquisition of the American steel firm by Nippon Steel, during his election campaign. The union said that it is disappointing that Trump has reversed course. The extraordinary controls may lead to a situation where he could even negotiate the salary and benefits of unionized steelworkers, the letter noted.

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