Steelworkers union outlines concerns of U.S. Steel acquisition
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Leaders of the United Steelworkers are expressing their concerns with the proposed $14.9 billion acquisition of Pittsburgh-based U.S. Steel by Nippon Steel.
In a letter to union members, USW International President David McCall and Negotiating Committee Chairman Mike Millsap said officials from both companies did not have answers to their questions about the future during a meeting on Friday.
The union said the proposed sale was sprung on the union on Dec. 18 when the deal was announced.
“Neither Nippon or USS contacted the union prior to the announcement, which is a violation of many sections of our labor agreement that require USS to provide us information about critical developments,” the union said.
When the sale was announced, Nippon said it would honor all collective bargaining agreements in place, but the union said simply saying that does not satisfy the conditions of their Basic Labor Agreement.
“Our contracts include extensive commitments to pensions and retiree health care, promised capital expenditures, Program of Insurance Benefits, local agreements, past practices and more,” the union said. “We intend to enforce the full measure of our current contracts, and obviously we are also concerned about any buyer making promises to stand behind our benefits..
The union also noted that Nippon representatives said they would not publicly report financial results for U.S. Steel, which “has a direct impact on our ability to verify Profit Sharing payments.”
A spokesperson for U.S. Steel did not respond to a request for comment from Inside INdiana Business.
The price tag for Nippon’s acquisition is nearly double what was offered earlier in the year by Cleveland-Cliffs Inc., an offer that received the support from the union.
The union said Nippon did not make the same promises that Cleveland-Cliffs made in its offer, including a commitment that no jobs would be lost, steel would continued to be made in America, and a commitment to make capital investments in existing facilities.
The letter also expressed concerns about the union’s existing relationship with Nippon, which has allegedly refused to honor a union organizing neutrality agreement at a steel plant in Alabama.
“Altogether, the proposed sale seems to be bad for workers, our communities and the domestic industry – as well as our national security, critical infrastructure and domestic supply chains,” the union said.
McCall and Millsap said they will call a meeting of local union presidents in the near future as more information about the sale is given.
U.S. Steel founded the city of Gary in Indiana with its Gary Works operation that at one time employed some 30,000 people. The steelmaker also operates the Midwest Plant in Portage.