After reading the ad in the Dec. 8 paper promoting the U.S. Steel-Nippon merger, I wanted to share an outside opinion, as I have no stock and never worked for USS. I did work for the Elliott Co. in Jeannette, which was bought by Japanese-owned Ebara Corp. in 2000, so I have experience as an employee of a Japanese-owned company. Ebara provided stability to Elliott Co.
In 1970, the U.S. Steel building was opened as a beacon in Pittsburgh, proclaiming its greatness as the premier steelmaker in the world. U.S. Steel was a major employer. Fast-forward to today: U.S. Steel has fallen to around 15th as a steel producer. Three steel facilities remain in Pittsburgh. The U.S. Steel building was sold to UPMC.
U.S. Steel is a shadow of its former greatness. Most of the blame for its decline can be laid at the feet of its management. It is no longer a beacon of greatness. Perhaps a merger with a stronger company (Nippon is fifth) can help it remain relevant and competitive.
I teach business at a local university and study Japanese culture. I have my students write a term paper on Toyota. Japanese businesses have five principles with respect to people: lifetime employment for permanent positions, employees as assets, company unions, bonuses and maintaining level payrolls when business conditions decline.
Nippon Steel is making promises that they most likely will keep. I think the future of U.S. Steel could be tied to Nippon Steel.
John Russo
North Huntingdon