The union representing United States Steel employees announced on Tuesday that it would not endorse Japanese company Nippon Steel’s proposed agreement to secure backing for its acquisition of the U.S. corporation.
In December, Nippon Steel reached an agreement to acquire U.S. Steel for approximately $15 billion. However, the deal is facing significant challenges in obtaining approval, particularly amidst bipartisan opposition during a U.S. election year.
The United Steelworkers (USW) union disclosed that it received a letter along with a draft agreement from Nippon Steel on March 27. Despite Nippon’s commitments, such as safeguarding jobs until September 1, 2026, and pledging to support U.S. Steel against unfair foreign trade practices, the union expressed dissatisfaction with the proposal, stating that it does not offer a substantial framework for resolving the ongoing disagreement.
Furthermore, the USW highlighted that the March 27 proposal failed to address the specific actions outlined in a previous letter sent by the union, which detailed the necessary steps for Nippon to secure its support.
The USW expressed openness to engaging in discussions with Nippon Steel officials in the upcoming weeks to address the current status of the transaction.