Nippon Steel makes anti-import vow to win over U.S. Steel workers

Nippon Steel Corp. is promising unionized workers of U.S. Steel Corp. it won’t send steel shipments from its overseas mills as part of its commitments to seal a $14.1 billion takeover of the iconic American company.

The commitment is among the undertakings highlighted by Nippon Steel’s Executive Vice President Takahiro Mori in a Monday letter to United Steelworkers members at two key U.S. Steel operations. Union leaders have repeatedly raised concerns that Nippon Steel’s overseas footprint threatens the American industry – arguing that the Japanese steelmaker may one day find it cheaper to export certain steel to the U.S. and replace some domestic output.

The letter reiterated promises made by the Japanese steelmaker in the last year, though served to counter arguments against the deal made by union leaders including USW President David McCall. Last week, the union leader questioned the legality of Nippon Steel’s meeting with workers.

“There is a lot of misinformation circulating about the Nippon Steel-U.S. Steel partnership and what it means for you,” Mori wrote. “We are here to inform you, not to negotiate as President McCall has suggested. I have asked President McCall to meet, most recently on Nov. 11. I await his response.”

Mori’s letter vowed not to import any overseas produced steel slabs into the U.S., or reduce the ability of U.S. Steel to produce slabs. He reiterated a promise that Nippon Steel wouldn’t pursue layoffs as part of the takeover and affirmed plans to make investments of about $2.7 billion to upgrade U.S. Steel facilities around the country.

Mori is in the U.S. this week visiting steelworkers in Pittsburgh, and is also likely to stop in New York and Washington. Mori said in his letter that his offer to meet with union leadership in Pittsburgh has gone unanswered, but he’s ready to work “expeditiously and in good faith” when they agree to come to the table.

McCall wasn’t immediately available for comment.

Nippon Steel’s takeover offer has grown increasingly controversial among some steelworkers, who are now openly challenging McCall’s and union leadership’s opposition to the deal. Rank-and-file members have said they support a deal because it would guarantee them job security. McCall has previously argued that there’s no guarantee the Japanese producer would keep union jobs years down the line and that its promised investments may not be all they’re cracked up to be.