Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Nippon's job protection pledges deemed 'meaningless' by United Steelworkers union

Published 03/04/2024, 08:02 am
© Reuters.

The United Steelworkers (USW) union has rejected a letter from Nippon Steel Corp, which described a commitment to invest and protect jobs as part of its $14.1 billion acquisition of United States Steel Corp. (NYSE:X).

The union called the letter, dated March 27 “a meaningless piece of paper.”

This response comes amid discussions over the proposed deal, highlighting the union's concerns over the assurances provided by the Japanese steelmaker.

“It is instead nothing more than another collection of empty promises and open-ended language that would enable it to skirt obligations to workers and retirees,” USW President David McCall and USW Negotiating Committee Chairman Mike Millsap said in a statement to members.

“In the response that we sent today, we were firm and clear: our union sees through Nippon’s proposal and will not support the transaction in exchange for a pack of empty promises. Nor will we be deceived by so-called commitments that have baked into them ways to release Nippon from following through.”

On Monday, Bloomberg News reported that Nippon Steel presented the USW with a document last week, which it termed a “bilateral agreement.”

This document formalizes promises made during a prior meeting between Nippon Steel's leadership and the union.

Despite facing opposition, including from President Joe Biden—who has expressed that US Steel should remain American-owned—Nippon Steel's new president has committed to proceeding with the company's acquisition of United States Steel Corp.

Shares of US Steel fell over 1% Tuesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.