Steelworkers union criticizes Nippon Steel proposal for lack of long-term commitment Reuters
(Reuters) – The United Steelworkers union has expressed concern over Nippon Steel’s latest proposal that would give the U.S. government veto power over any potential reductions in U.S. Steel’s production capacity if the merger is approved.
The union, which opposed US Steel’s merger with the Japanese steel giant, said Nippon’s offer did not commit to long-term maintenance of production or increased domestic capacity at integrated plants.
“Capacity protection just means putting our equipment in a mothballed state, allowing it to rust to the point where it can no longer be restarted,” the union said in a statement on its website Thursday.
The proposal “is nothing more than a Hail Mary pass destined to fall to the ground,” it added.
On Tuesday, reports said Nippon Steel made a proposal to give the government the final say on any potential output cuts, as part of its efforts to secure President Joe Biden’s approval for a takeover of the US steelmaker.
The Committee on Foreign Investment in the United States (CFIUS) forwarded the decision to approve or block the deal to Biden, who must decide on the deal by January 7.
Failure to do so would result in automatic approval of the merger.
US Steel and Nippon Steel did not immediately respond to Reuters requests for comment.
