Nippon Steel Corp. Vice President Takahiro Mori is about to embark on a visit to the United States that will include a meeting next week with workers from the three major local unions that run United States Steel Corp.’s iconic plants. operate in the Pittsburgh area.
The move suggests the Japanese company is trying to convince rank-and-file union members that its $14.1 billion offer to take over US Steel will be good for workers’ long-term prospects. During his campaign, President-elect Donald Trump said he would block the deal, which is still before regulators.
Jason Zugai, vice president of United Steelworkers Local 2227, said in an interview that he received a personal email from Mori and agreed to sit down with management next week at a time to be determined and bring several union members from Edgar Thomson factory, Clairton factory and Irvin factory. Zugai said he hopes United Steelworkers International President David McCall has remained steadfast in his stance opposition Since the deal was announced in December, he will also sit down with Mori and reconsider his stance.
The news comes as both companies await a decision from the Committee on Foreign Investment in the United States (CFIUS) on the pending transaction. Earlier this year the security panel granted Nippon Steel receives permission to resubmit its purchase plans. The potential takeover became a focal point of the election, particularly in the swing state of Pennsylvania, where both US Steel and USW are based. Investors, analysts and the entire industry are looking forward to a decision after the election.
Nippon Steel did not immediately respond to requests for comment. US Steel declined to comment.
In a statement, McCall said he was not aware that local union members had met with Mori. He reiterated the position that the national union is seeking a written contract from Nippon Steel that guarantees capital investment. He said the current terms of the deal would come “at the expense of national defense” and critical supply chains.
In the interview, Zugai said he expected to tell Mori that he and his fellow steelworkers wanted their employment contract extended: “Extend it for another four years, keep the same wage increases.” That would go a long way toward making this deal a reality to bring closure.”
“I’m doing whatever I need to do to get this deal done,” Zugai said.
Visit stops
Zugai also said Mori will attend the Pittsburgh Steelers’ football game against the Baltimore Ravens this weekend.
Mori is also likely to stop in New York and Washington during his visit, according to a person familiar with the plans, and asked not to be identified because the information is confidential. The trip has been in the works for several weeks, but the company is waiting for the U.S. election to pass on Nov. 5, the person said.
McCall, the union leader, said in an interview last month that he would do one Final spurt before the election to emphasize to his members why the union leadership opposed the Japanese takeover, a move that came as rank-and-file members openly questioned his position. A group of union members in October spoke to a Fox News morning show to publicly say they support Nippon Steel’s takeover of the venerable US company.
A day before the election, Zugai said he and many other steel workers stood with Trump at a campaign rally in Pennsylvania to show their support for the candidate. Zugai said he then spoke to Trump for about three minutes about the deal and told him that many steelworkers supported it.
It’s unclear whether a decision to approve or scuttle the deal will ever land on Trump’s desk, as the CFIUS decision period has been pushed back to December while the Biden administration is still in office.