An arbitration board has ruled that U.S. Steel may proceed with its proposed acquisition by Nippon Steel, a deal that faces strong opposition from its workforce.
The board, which was jointly chosen by U.S. Steel and the United Steelworkers to decide disputes between them, said Wednesday that U. S. Steel has satisfied each of the conditions of the successorship clause of its basic labor agreement with the union. It determined that no further action under the agreement was necessary in order to proceed with the closing of the proposed transaction with Nippon Steel.
USW had filed a series of grievances in January alleging that the successorship clause had not been satisfied. The union has previously stated that it doesn’t believe Nippon fully understands its commitment to steelworkers, retirees and its communities. USW has expressed concern about the enforcement of its labor agreements, having transparency into Nippon’s finances, as well as national defense, infrastructure and supply-chain issues…