US Steelworkers Union Criticizes Sale of Company to Japan’s Nippon Steel
The United Steelworkers (USW) union has raised concerns over the recent sale of U.S. Steel to Japan’s Nippon Steel. Union members fear that their job security and the future of the American steel industry may be at risk with this foreign acquisition.
Local union presidents have voiced their dissatisfaction with the deal, accusing U.S. Steel of prioritizing profits over American workers. “It was the workers that drove the force for the profits to be made, and at the end of the day, they sold off to the highest bidder to line their own pockets, and left these guys kind of holding the bag with an uncertain future,” said Michael Evanovich, President of Local 1219.
The sale, valued at $14.9 billion, represented a 40% premium to U.S. Steel’s stock at the time. While shareholders have reaped the benefits of this merger, union members are left worried about their livelihoods and the impact of foreign ownership on the American steel industry.
Don Furko, President of USW Local 1557, expressed his disappointment, stating, “I feel like they already haven’t put America first, by selling out to a foreign entity.”
U.S. Steel, however, has defended the deal, claiming that Nippon Steel’s investment will strengthen the American steel industry and benefit American customers, employees, and communities. A spokesperson for Nippon Steel also assured that they would honor the union’s collective bargaining agreement, promising no layoffs or facility closures as a result of the transaction.
This sale comes after U.S. Steel issued layoff warnings to 1,000 employees at its Granite City, Illinois, mill last year. The indefinite idling of iron and steelmaking operations at the facility has put the livelihoods of many workers at risk, along with the local businesses that depend on their income.
Former President Donald Trump expressed his disapproval of the acquisition, stating that he would block the deal. “We put big tariffs on steel. I saved the steel companies. And now Japan is buying U.S. Steel… I don’t think I’d let that deal go through,” Trump said.
The White House also expressed concerns about the transaction, calling for “serious scrutiny” of the deal.
The sale of U.S. Steel to Nippon Steel has ignited a debate over the future of the American steel industry. The USW union and its members are urging for greater protection of American workers and industries, highlighting the importance of putting America first in such transactions.
As the deal moves forward, the fate of American steelworkers and the industry itself hangs in the balance.
