The United Steelworkers (USW) said it had received a letter from Nippon Steel promising not to lay off employees until September 2026 after a successful acquisition of United States Steel, but the union decided not to support the acquisition.
This move presents significant hurdles to the success of Nippon Steel's acquisition. Nippon Steel reached a nearly $15 billion acquisition agreement with U.S. Steel last December.
However, U.S. President Joe Biden has stated that he wants U.S. Steel to be owned by local people. The U.S. political community has also urged the government not to approve the acquisition.
According to the USW, Nippon Steel has made several commitments, including not laying off employees before September 1, 2026, in addition to maintaining U.S. Steel's response to unfair trade treatment. However, the USW believes that the letter does not provide a meaningful basis for both parties to resolve their differences. The USW pointed out that it had written to Nippon Steel with some specific suggestions, but the other party did not support the suggestions.
The USW said it was open to dialogue with Nippon Steel in the coming weeks.
