US Steel employees rally in support of Nippon Steel transaction

United States Steel Corp. employees hosted a rally Sept. 4 at the U.S. Steel Tower in the company’s headquarters city of Pittsburgh in support of the Nippon Steel transaction, calling on elected officials in Pennsylvania and across the nation to recognize what the company says are the significant merits of the transaction for U.S. Steel employees, communities, customers and American steelmaking.

According to a Sept. 4 report from WTAE, several hundred employees participated in the rally, which included speeches from rank-and-file employees and corporate executives. The network also reports that U.S. Steel said all employees were invited, with bus transportation to the event provided to those who needed it. The company also supplied hand-held signs supporting the Nippon Steel deal.

Nippon Steel announced Dec. 18, 2023, that it would acquire U.S. Steel to create “the best steelmaker with world-leading capabilities.”

U.S. Steel stockholders approved the transaction April 12, with more than 98 percent of the shares that were voted at the Special Meeting in favor of the transaction.

In late May, the companies said they had received all regulatory approvals outside the United States related to the proposed transaction.

On Aug. 28, Nippon Steel announced plans to invest more than $2.7 billion in USW-represented facilities at Mon Valley Works in Pennsylvania and Gary Works in Indiana in support of the future of manufacturing for those communities. Those investments are subject to the closing of the transaction with U. S. Steel and receipt of necessary regulatory approvals. A stand-alone U.S. Steel has not make the same financial commitments.

U.S. Steel President and CEO David B. Burritt says the rally was about “displaying support for the transaction with Nippon Steel. We want elected leaders and other key decision-makers to recognize the benefits of the deal as well as the unavoidable consequences if the deal fails.”

Without the Nippon Steel transaction, U.S. Steel says it largely will pivot away from its blast furnace facilities, putting thousands of union jobs at risk, negatively affecting numerous communities across the locations where its facilities exist and depriving the American steel industry of an opportunity to better compete on the global stage.

The company says if the deal is not approved, it also could move its headquarters from Pittsburgh.

“The departure of U. S. Steel, a company that has been making steel in the Mon Valley since 1901, would deprive the Pittsburgh area of jobs, tax revenue and community-based contributions,” U.S. Steel says.

The company cites a 2023 economic impact study that shows U.S. Steel’s operations in the state generated $3.6 billion in total economic impact, supported and sustained 11,417 jobs through its operations and purchases from the local supply chain and generated $138.2 million in state and local taxes as a result of operations and capital spending.

However, the same day of the rally, Reuters reported that President Joe Biden is preparing to block Nippon Steel's acquisition of U.S. Steel, citing an anonymous source.