Nippon Steel’s Mori Urges USW Leadership to ‘Come to the Table’

TOKYO (Reuters) – Takahiro Mori, Vice Chairman of Nippon Steel, stated on Tuesday that the company remains dedicated to engaging in discussions with the United Steelworkers (USW) labor union regarding its proposed acquisition of U.S. Steel.

Additionally, Nippon Steel announced its decision to divest its entire stake in South Korean steel producer Posco Holdings, estimated to be worth around $820 million based on recent market prices. This move aligns with reports suggesting that the company aims to streamline its assets in light of the pending U.S. Steel takeover. In a statement to the Tokyo stock exchange, Nippon Steel indicated its intention to sell 2.9 million shares of Posco to enhance asset efficiency.

Mori, who is leading the negotiations for the $14.9 billion acquisition deal, criticized USW President David McCall, stating that McCall "has not seriously considered any of the proposals we have presented" in his correspondence to U.S. Steel employees. Mori expressed hope that USW leadership would engage in negotiations soon.

In response, USW International President David McCall stated that "Nippon Steel has never made a promise it couldn’t easily undo with the stroke of a pen," emphasizing that the company’s commitments are conditional and could change at any moment, potentially jeopardizing workers and their communities.

The acquisition has garnered criticism from prominent figures in both major political parties, including Democratic candidate Kamala Harris and Republican contender Donald Trump, particularly as the U.S. presidential election approaches in November.

According to sources, the U.S. national security panel overseeing the merger has permitted the companies to resubmit their application for approval, postponing a decision on this politically sensitive deal until after the presidential election on November 5.

In his letter, Mori reaffirmed Nippon Steel’s commitment to preserving U.S. Steel’s blast furnace operations in the long term, assuring that the company would not use slabs produced overseas in lieu of those made in U.S. Steel facilities represented by the USW.

Mori also stated that Nippon Steel would honor all commitments made by U.S. Steel concerning union agreements, including labor relations, pensions, and insurance, while pledging not to interfere with U.S. Steel’s trade decisions.

The companies aim to finalize the acquisition by the end of December, contingent on receiving the necessary regulatory approvals.