United Steelworkers’ Frustration Continues, Claims No Communication from Nippon Steel

SEATTLE (Scrap Monster): Following continued frustration from the United Steelworkers Union over the purchase of U.S. Steel by a foreign company, previous bidder Cleveland-Cliffs believes the deal is far from over.

In August, U.S. Steel rejected a $7.3 billion offer from Cleveland-Cliffs. However, Cleveland-Cliffs has received the union’s support for purchasing U.S. Steel.

In December, U.S. Steel announced its sale agreement to Japanese-owned Nippon Steel, meaning Nippon would fully own Keetac and Minntac and co-own Hibtac on the Iron Range.

The union immediately expressed its disappointment with U.S. Steel saying making a deal with a foreign company demonstrates greed and short sightedness on U.S. Steel’s part.

In a letter sent to its members Monday, the union voiced its frustration with Nippon Steel, claiming there is no communication or transparency from the company.

According to the document from USW, Nippon Steel will have its Houston-based company, Nippon Steel North America (NSNA) , acquire U.S. Steel.

That means the parent company would not have to uphold any contractual agreements for the union members.

The union asked Nippon Steel for financial information on NSNA but the company admitted no financial information exists for the holding company.

USW said it will continue to fight for the rights of its members despite previously being disrespected by U.S. Steel and presumes it will continue to be disrespected.

In its 2023 yearly earnings call Tuesday morning, Cleveland-Cliffs CEO Lourenco Goncalves said his company will also continue to fight for the union members.

Goncalves said he does not believe the deal with Nippon Steel is done just yet.

“It is our proven commitment to not just preserve, but to grow good American manufacturing jobs, good American middle-class jobs, and maintain American ownership of industries,” said Goncalves. “We do not believe the final chapter of this story has been written.”

He also praised the Biden administration for raising alarm bells and investigating the deal to ensure it does not break any anti-trust laws.

Courtesy: www.northernnewsnow.com