Escalating promises from Nippon not enough for United Steelworkers, Sen. Fetterman says in U.S. Steel deal

The United Steelworkers say they’re unmoved by Nippon Steel’s latest efforts to win their support for the Japanese company’s $15 billion bid to buy U.S. Steel.

A source familiar with Nippon’s decision making confirmed the contents of a last-minute proposal sent to the White House and initially reported by the Washington Post as the Tuesday deadline nears for President Joe Biden to block the deal.

The most notable concession would give the U.S. government veto power over production capacity reductions.

But, in a letter Thursday, union leadership called the announcement another “worthless” promise.

And as long as union leadership opposes the takeover, so will Sen. John Fetterman, he told TribLive in an exclusive interview.

“I am going to follow the union,” Fetterman said. “I’m sure there might be some people that disagree, but union leadership has been directly in negotiations and have been following it very closely.”

By some estimates, up to 90% of rank-and-file U.S. Steel workers at the company’s Mon Valley Works have warmed to the deal, and 19 local politicians signed a letter Dec. 23 calling on Biden to allow the deal.

Following a split recommendation from the Committee on Foreign Investment in the United States, which vets investments from abroad for national security conflicts, the deal’s fate lies with Biden.

The Washington Post has reported, however, that Biden could condition his approval on Nippon complying with additional requirements, potentially pushing the final call to the next administration.

Like Biden, President-elect Donald Trump has vowed to block the sale.

Fetterman, Rep. Chris Deluzio and outgoing Sen. Bob Casey have been vocal in their opposition, as well, fearing the Mon Valley’s integrated steel making operation could be shuttered under Nippon.

“We jammed this up for them,” Fetterman said. “If everybody just rolled over when this was announced, this absolutely was a death sentence.”

He continued: “And now they’re trying to pretend that they’re just looking out for everyone.”

In a statement, Deluzio credited “pressure from guys like me” for the movement at the negotiating table.

“I will continue to fight hard for the best deal for Western Pennsylvania’s steelworkers and American steel making,” he added.

Since announcing the takeover in December 2023, Nippon has promised $2.7 billion in upgrades to union-run plants and $5,000 closing bonuses for eligible employees in an effort to shore up worker support.

It also has attempted to assuage security concerns from federal officials by offering a 10-year guarantee to not slash production capacity at U.S. Steel’s mills in Pennsylvania and five other states without the Committee on Foreign Investment’s approval.

Furthermore, the company has pledged to appoint American citizens to board seats and top management positions at U.S. Steel post-merger.

Union leaders also spoke out Thursday against a pro-sale petition they claim U.S. Steel and Nippon are forcing supervisors to pass around to workers.

U.S. Steel spokesperson Amanda Malkowski called this accusation “completely inaccurate,” even as local union leaders and rank-and-file workers have engaged in a letter-writing campaign.

Nippon Steel declined to comment.