Nippon Steel Takeover Likely to Fail: Massive Win for Labour Unions

President Biden will once again deliver for union workers - maybe for the last time as President of the United States, as he has committed to stop an approximately USD 14.9 billion takeover, as reported by Reuters, of the face of the might of the United States' industry. Unions rejoice, while capitalists revel in despair: we will explore all this and more in this article.

The Deal

Nippon Steel, a Japanese steel company proposed a takeover of US Steel, a local steel producer in Pittsburgh, Pennsylvania. It is believed by the United Steelworkers labour union (USW), that the goal for Nippon Steel with this merger was to use the United States' finishing mill to finish slabs of steel produced in Japan, and not produce the slabs in United States' borders.

Corporate Threats

In order to get their way, and probably profiteering from this takeover, have threatened to close down its steel mills with unionized workers, which is an attempt to destroy the union way of life that is so prevalent in Pennsylvania. They have even threatened to move the headquarters away from Pittsburgh, which has great significance as the town was once the centre of the steel industry in America, so much so that it is nicknamed, "The Steel City". To take the headquarters out of Pittsburgh is not only an insult to those that built Pennsylvania, but it is also would kill off good paying union jobs in the state.

Pushbacks from politicians and USW

There has been righteous pushback from high-ranking politicians, including President Biden and both Pennsylvanian senators: Senators Bob Casey and John Fetterman. President Biden, Pennsylvania's own, has made it clear that he wants American Steel to be American owned and operated. Born in Scranton, Pennsylvania and growing up in a typical American middle-class family has probably made him appreciate and value the importance of steel manufacturing to his birth state.

Senators Casey and Fetterman have both come out in opposition to the acquisition and have fired back at US Steel's threat. Fetterman, in his 2022 successful Senate bid, came out in support of union workers and has stuck by them in this debate. Living beside a plant of US Steel, Senator Fetterman said he will speak out with USW against "shameless executives".

Meanwhile, a less combative but nevertheless firm Senator Casey has made his case. In a statement calling out US Steel for not investing in Pennsylvania, he said that Burritt, the US Steel CEO, was "willing to put livelihoods at stake" if events do not play out according to his plan. The strong support from both Senators shows that Pennsylvania chose the right people to stand up for their best interests.

Meanwhile, the USW has beefed up their ground game, and actually gone on offence against Nippon stating that they have essentially ignored the union's concerns for jobs, good wages or benefits after their contracts expire in 2026, throwing in the very real question if their jobs will be outsourced.

Harris and Trump agree?

Both campaigns for president have agreed that the takeover of US Steel should be blocked upon their winning the presidency, Harris wants American steel to be American owned, while Trump did not say anything much, other than "I don't think they should buy it".

Regardless, it is a win for steel labour unions delivered by the Biden Administration. This man just cannot lose on the economy, lame duck or not. Vice-President Kamala Harris and Governor Tim Walz would fight tooth and nail to expanding on what President Biden has proposed.

When we fight, we win!