The proposed $14.9 billion acquisition of U.S. Steel by Nippon Steel, one of Japan’s largest steel producers, has triggered significant opposition from labor unions, particularly from the United Steelworkers. At the heart of the resistance is David McCall, the International President of the USW, who has made his disapproval of the deal clear. McCall's position reflects deep concerns about the future of the steel industry in the United States, particularly with regard to jobs, wages, and national security.
McCall’s opposition first surfaced in December 2023 when the deal was announced. He quickly pointed out what he perceived as a lack of transparency from both U.S. Steel and Nippon Steel about the impact the acquisition would have on U.S. workers. This lack of clarity, McCall argued, was troubling for the thousands of unionized steelworkers whose livelihoods could be affected by the sale. The union has been vocal in its resistance, with McCall criticizing the deal’s potential to further outsource American jobs to non-unionized facilities in foreign countries.
Recently, as part of a public relations campaign, U.S. Steel and Nippon Steel have launched a series of advertisements that tout the deal as a “new chapter” for American steel production. These ads feature Mon Valley mayors, community leaders, and even some union members who argue that the sale would safeguard jobs and bring needed investment to facilities like the Mon Valley Works. The company has promised a $1 billion investment into these aging plants, which are seen as some of the last remaining integrated steel mills in the U.S. However, McCall remains unconvinced by these promises. He expressed concerns that the advertisements were a strategic attempt to sway public opinion, rather than address the core issues of job security and workplace conditions that are central to the union’s opposition.
According to McCall, the real issue is that the companies involved in the deal are more focused on marketing and securing public approval than on making substantive commitments to workers. He criticized the lavish spending on advertisements instead of investing directly in the plants and facilities that employ American workers. In his view, the funds allocated for the PR campaign would be better spent improving the plants and securing workers' futures.
While U.S. Steel’s CEO, David Burritt, has argued that the company lacks the financial resources to upgrade its facilities and remains dependent on a buyer to stay competitive, McCall believes that improvements can be made without sacrificing jobs. The steel industry, he contends, has long been the backbone of American manufacturing, and its future should be safeguarded through union negotiations rather than relying on foreign ownership.
Another major concern for McCall and many union members is the guarantee of job security in the event of the sale. In meetings with Nippon Steel, McCall was told that discussions about specific job guarantees would only take place after the deal closed. This response, according to McCall, is entirely inadequate. He argued that workers cannot afford to wait until the deal is completed to find out how their futures will be impacted. The union’s demand is clear: any sale must come with solid, transparent guarantees that workers’ jobs will not be jeopardized in the process.
The fate of the acquisition ultimately rests with the Committee on Foreign Investment in the United States, a government body responsible for evaluating the national security implications of foreign investments in U.S. companies. The CFIUS is currently reviewing the deal, and the Biden administration has made it clear that it is wary of the potential risks involved. Both President Biden and former President Trump have voiced strong opposition to the deal, citing concerns over the impact on American manufacturing and national security.
As of now, the review process is ongoing, with the CFIUS expected to release its findings by December 23, 2024. These findings will play a significant role in determining whether the deal can move forward. The national security concerns highlighted by both political figures and labor unions have put additional pressure on the review process, making it one of the most contentious corporate transactions in recent years.
The situation remains in flux, and for workers like those at the Mon Valley Works, the uncertainty surrounding the deal is a source of constant anxiety. As McCall has emphasized, the United Steelworkers are committed to protecting their members' jobs and ensuring that any changes in ownership or operation come with clear and enforceable commitments to the workforce. As this high-profile deal progresses, the steelworkers’ stance remains resolute: they are not willing to accept vague promises and marketing campaigns when the livelihoods of thousands of American workers are at stake.
