(Reuters) – The head of a powerful U.S. steelworkers union that opposes the sale of U.S. Steel to Japan’s Nippon Steel said he has not received assurances from the Asian group that it is committed to ensuring the U.S. steelmaker’s lasting success .
Nippon Steel’s $15 billion takeover bid for U.S. Steel has been criticized by both U.S. President Joe Biden and President-elect Donald Trump and is subject to a national security review later this month by the U.S. US government CFIUS.
David McCall, head of the United Steelworkers union, spoke to Reuters on Monday as Nippon Steel published details of the various commitments it made to win the union’s support, including job security and investment.
One of McCall’s main concerns is that Nippon might import steel into the U.S. from its international mills, a strategy he fears could erode a company that helped build the Empire State Building and arm U.S. forces in WWII. World War.
“When we talked to them, there was nothing that assured us of the long-term viability of operations,” McCall told Reuters. “They (Nippon Steel) want a return on investment and I understand that, but they cannot let our facilities deteriorate so they can bring products from their other plants around the world and have access to our market.”
Nippon Steel has previously denied that it will import steel from its international mills after reaching the deal with US Steel and has repeatedly said it considers the US to be a key market for its future growth.
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Representatives for Nippon Steel and US Steel declined to comment.
McCall also criticized the Japanese suitors for not trying to stop or intervene in what he called the “bullying” of US Steel Chief Executive David Burritt into closing the deal.
Burritt told the Wall Street Journal in September that the company would close steel plants and likely move its headquarters out of Pittsburgh if the sale to Nippon Steel falls through.
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“He’s like a schoolyard bully demanding his lunch money,” Burritt said, adding that the threats “really scared” some of his members.
Nippon Steel wants to close the deal before Trump – who has promised to block the transaction – takes over the US presidency on January 20.
