Apr 26, 2025, 9:00 AM
Apr 26, 2025, 9:00 AM

Union boss struggles to oppose Nippon-US Steel merger backed by members

Highlights
  • The proposed merger between Nippon Steel and U.S. Steel involves a $15 billion investment.
  • David McCall, president of the United Steelworkers, opposes the deal while many local members support it.
  • His past criticisms of Donald Trump create challenges in influencing the administration's decision.
Story

In December 2023, Japan's Nippon Steel announced a proposed merger with U.S. Steel that would involve a significant financial investment of $15 billion. This merger became a contentious issue, particularly for the United Steelworkers (USW) union, where president David McCall found himself in a complicated position. Although he has publicly opposed the merger, many of his local union leaders and members expressed strong support for it, creating friction within the union.Newly elected President Joe Biden initially blocked the deal in January 2024, but shortly afterward, the administration allowed Nippon Steel additional time to complete the transaction, extending the deadline to June 18 of that year. This is noteworthy because it reflects the evolving political and economic landscape surrounding the U.S. steel industry, alongside union dynamics and international investments. While historically McCall has positioned himself as a vocal critic of Trump and his policies, now he finds himself needing to convince Trump's administration to halt a deal that would benefit U.S. Steel, despite his negative past statements about the former president. The attempt by McCall to thwart the merger is further complicated by the support for the deal manifested through rallies by hundreds of union members demanding that the Biden administration approve it. Union vice president Jason Zugai highlighted a significant shift of sentiment among the members, indicating that only 5% opposed the deal at the time. As Trump warms up to the prospective deal, McCall's credibility faces scrutiny due to his earlier criticism of the administration, potentially undermining his influence over the decisions surrounding union members' future in the steel industry.

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