Nippon Steel, the Japanese steel giant, has sought to assuage concerns of US Steel workers by pledging to protect their jobs and benefits if its proposed acquisition of the American company goes through, NHK reports.
In a letter addressed to US Steel employees, Nippon Steel outlined its commitment to ensuring job security and maintaining current benefits for the workforce. The letter also promised to make US Steel more competitive in the global market and pledged to keep the company’s blast furnace operating long-term.
Further, Nippon Steel stated it would not interfere with US Steel’s existing trade measures aimed at tackling low-priced imports. The letter also argued that the acquisition would strengthen US national security, a key concern raised by the United Steelworkers union, which represents US Steel employees.
The proposed buyout, agreed upon in December 2023, has faced staunch opposition from the union. The union has accused Nippon Steel of making empty promises, arguing that the acquisition would threaten US national security and that investment commitments are not legally binding.
In a series of letters sent to its members this month, the union has urged them to oppose the acquisition, citing concerns over job security and potential job losses, as well as the impact on the US steel industry’s competitiveness.
Nippon Steel has countered these claims, accusing the union of not seriously considering its proposals and urging union leaders to engage in negotiations.
