According to U. S. Steel, an arbitration panel determined that the company has satisfied each of the conditions of the successorship clause in the basic labor agreement with the United Steelworkers union (USW). 

U. S. Steel said the panel affirmed that Nippon Steel has recognized the USW as the bargaining representative for USW-represented employees; 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; and assumed commitments to all USW agreements that are applicable to USW-represented employees.

“With the arbitration process now behind us, we look forward to moving ahead with our pending transaction with Nippon Steel,” said U. S. Steel president and chief executive officer David Burritt. 

“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.”

The USW, however, said it is disappointed by the decision and strenuously disagrees with the result. 

“The arbitrators accepted at face-value Nippon Steel’s statement that it would assume the basic labor agreement, despite the obvious means by which it’s using its North American holding company to insulate itself from our contracts,” the union said in a note to members. 

“Nippon’s commitment to our facilities and jobs remains as uncertain as ever, and executives in Tokyo can still change U. S. Steel’s business plans and wipe them away at any moment.” 

The union said it believes Nippon Steel’s intent is to embrace non-union, electric arc furnace steelmaking at the Big River plant in Arkansas and run away from integrated steelmaking. 

“Unless the owner of (U. S. Steel) makes iron-clad, enforceable commitments to maintain blast furnace operations well into the future, our country will lose its capacity to make much of what we need for the automotive industry, bridges and other infrastructure, and military operations. As we know, these products cannot be made in electric arc furnaces like Big River,” the union said.