PITTSBURGH — Nippon Steel has been given the go-ahead to close the pending sale of U.S. Steel.
The United Steelworkers and U.S. Steel’s Board of Arbitration ruled that the company has satisfied each of the conditions of the successorship clause of its Basic Labor Agreement with the union and that no further action under the agreement is required to proceed with the sale’s closing.
On Jan. 12, USW leadership filed a series of grievances alleging that the successorship clause in the BLA had not been satisfied. On Aug. 15, the Board of Arbitration heard evidence and arguments from both U. S. Steel and the USW on the matter.
In Wednesday’s announcement, the Board of Arbitration said Nippon Steel has:
- recognized the USW as the bargaining representative for USW-represented employees at U. S. Steel
- provided reasonable assurances that it has both the willingness and financial wherewithal to honor the commitments in the agreements between U. S. Steel and the USW applicable to USW-represented employees
- assumed all USW agreements that are applicable to USW-represented employees at U. S. Steel
Nippon Steel has committed to invest no less than $1.4 billion in USW-represented facilities, not to conduct layoffs or plant closings during the time of the BLA and to protect the best interest of U.S. Steel in trade matters, the Board of Arbitration said.
Following the ruling, Karl Kocsis, Vice President and Chief Labor Relations Officer for U. S. Steel, commented, “We commend the Board of Arbitration for its thorough review of the USW’s allegations and are pleased with its decision that U. S. Steel and Nippon Steel have fully complied with the BLA. U. S. Steel always has and always will continue to have the utmost regard for our union-represented employees and the role of the USW.”
David Burritt, President and Chief Executive Officer of U. S. Steel said, “With the arbitration process now behind us, we look forward to moving ahead with our pending transaction with Nippon Steel. With the significant investments and contractual commitments from Nippon Steel, we will protect and grow U. S. Steel for the benefit of our employees, communities and customers. We look forward to collaborative discussions with the USW and all our stakeholders.”
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