Board of Arbitration Rules in Favor of U. S. Steel, Affirming Transaction with Nippon Steel

United States Steel Corporation (“U. S. Steel” or the “Company”) announced the Board of Arbitration, which is jointly selected by U. S. Steel and the United Steelworkers (“USW”) to decide disputes between them, ruled that U. S. Steel has satisfied each of the conditions of the successorship clause of its Basic Labor Agreement (“BLA”) 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 (the “Transaction”).

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 of Arbitration 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—in support of its decision.

Courtesy of U.S. Steel.

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