The United Steelworkers (USW) union is asking US Steel for details of its deal with Japanese steelmaker Nippon Steel, citing concerns over transparency and protection of workers' rights during contract negotiations.
In a social media post and rally at a US Steel plant last month, US president Donald Trump described a deal he approved between USS and Nippon as a "partnership," saying it would keep the company headquartered in Pennsylvania and involve $14bn in investments.
But in a 6 June letter to US Steel, the USW says it is unclear what the partnership actually entails, and whether it is just an investment or a merger. The union questions how the new agreement that Trump touted is different from Nippon's original plan to fully acquire US Steel and make it a wholly-owned subsidiary.
The inclusion of any of those elements in the deal would be a matter US Steel is obligated to share with the union as it would "... unquestionably involve a highly material change to the merger agreement," the union said in the letter. "Further, the Union would be entitled to this information to determination how these changes — if, in fact, anything has changed or will change — affects other obligations under the [basic labor agreement between the union and the company]."
Sources in the steel industry say that they expect the reworded deal to essentially be a buyout of US Steel.
Neither Nippon nor the White House have provided details about the transaction, including where the investments will be directed or what kind of oversight or accountability there will be.
Even with ongoing contract negotiations, there has been no indication that Nippon has withdrawn its condition allowing it to cancel promised investments if union members go on strike or take other legal action, the union said.
