Arbitration Board Rules for USS in Merger
By
Metal Center News Staff on
Sep 26, 2024
The Board of Arbitration, a body jointly selected by United States Steel Corp. and the United Steelworkers, has sided with the steelmaker in the proposed sale to Nippon Steel. The board ruled that U.S. Steel has satisfied each of the conditions of the successorship clause of its Basic Labor Agreement with the USW and that no further action under the BLA is required to proceed to closing the pending transaction between U.S. Steel and Nippon Steel.
On Jan. 12, USW leadership filed a series of grievances alleging the successorship clause in the BLA had not been satisfied. On Aug. 15, 2024, the Board of Arbitration heard evidence and arguments from both U.S. Steel and the USW on the matter. The Board of Arbitration determined that the successorship clause has been satisfied and that, as required by the BLA, Nippon Steel has:
• recognized the USW as the bargaining representative for USW-represented employees at U.S. Steel;
• provided reasonable assurances that it has both the willingness and financial wherewithal to honor the commitments in the agreements between U. S. Steel and the USW applicable to USW-represented employees; and
• assumed all USW agreements that are applicable to USW-represented employees at U.S. Steel.
In making this decision, the Board of Arbitration recognized the repeated written commitments Nippon Steel made to fulfill the requirements of the successorship clause and that no further actions by Nippon Steel were required. Moreover, the board cited Nippon Steel’s written commitments—including its commitment to invest no less than $1.4 billion in USW-represented facilities, not to conduct layoffs or plant closings during the term of the BLA, and to protect the best interests of U.S. Steel in trade matters –n in support of its decision.
With the completion of this arbitration proceeding, all outstanding issues related to the BLA have now been resolved with respect to the transaction.
“We commend the Board of Arbitration for its thorough review of the USW’s allegations and are pleased with its decision that U.S. Steel and Nippon Steel have fully complied with the BLA. U.S. Steel always has and always will continue to have the utmost regard for our union-represented employees and the role of the USW,” said Karl Kocsis, vice president and chief labor relations officer for U.S. Steel.