Dave McCall, President of the United Steelworkers, joined the America’s Work Force Union Podcast to talk about the sale of U.S. Steel to Nippon Steel and President Biden’s recent comments that cast doubt on the finality of the deal.
The sale of U.S. Steel to Nippon Steel has been controversial since it was first announced. McCall talked about past issues that have created mistrust of Nippon Steel by many American steel manufacturers. McCall then spoke about the potential harm this sale could cause to the supply chain responsible for producing items crucial to the country's defense.
Recently, President Joe Biden said he was opposed to the sale of U.S. Steel and to Nippon Steel. Now, Biden’s comments are raising questions about the finality of the deal, and according to McCall, there is a potential for Cleveland Cliffs, the USW-supported buyer, to reenter into negotiations for the purchase of U.S. Steel.
Finally, McCall outlined more of the problems with the Nippon deal. It included a lack of commitment by Nippon Steel to rebuild American blast furnaces and maintain the ones still in use. There are no current American operations for Nippon Steel in America. Instead, McCall said they operate through a subsidiary named Nippon Steel Company North America, Inc. This operation method creates issues for financial reporting, making it hard to ensure Nippon pays the correct taxes and fees to the government. As the situation evolves, McCall and the USW plan to lead the fight to keep the steel industry operating on American Soil.
To learn more about McCall’s conversation about the U.S. Steel deal, listen to the show above.