An arbitration board has ruled that U.S. Steel may proceed with its proposed acquisition by Nippon Steel, a deal that faces strong opposition from its workforce.

The board, which was jointly chosen by U.S. Steel and the United Steelworkers to decide disputes between them, said Wednesday that U. S. Steel has satisfied each of the conditions of the successorship clause of its basic labor agreement with the union. It determined that no further action under the agreement was necessary in order to proceed with the closing of the proposed transaction with Nippon Steel.

The union had filed a series of grievances in January alleging that the successorship clause had not been satisfied.

The union has previously stated that it doesn’t believe Nippon fully understands its commitment to steelworkers, retirees and its communities.

USW has expressed concern about the enforcement of its labor agreements, having transparency into Nippon’s finances, as well as national defense, infrastructure and supply-chain issues.

The arbitration board heard evidence and arguments from U.S. Steel and USW last month.

The board said Wednesday that it recognized the repeated written commitments Nippon made to fulfill the requirements of the successorship clause and that no further actions were required by the company.

The written commitments include Nippon’s pledge to invest at least $1.4 billion in USW-represented facilities, not to conduct layoffs or plant closings during the term of the basic labor agreement, and to protect the best interests of U.S. Steel in trade matters.

USW said in a statement on Wednesday that it disagreed with the arbitration board’s result.

President Joe Biden has previously voiced his opposition to Nippon Steel buying U.S. Steel, but the federal government appears to be in no hurry to block the deal.

The proposed takeover carries some heavy political weight in Pennsylvania, a state that both Vice President Kamala Harris and Donald Trump view as a must-win in November’s presidential election.

U.S. Steel is headquartered in Pittsburgh.

Harris and Trump also have both come out against the deal.

— Associated Press

Calif. would let cities veto oil development

California Gov. Gavin Newsom on Wednesday signed a new law that allows cities, counties, and local voters to block construction of new oil and gas wells in their communities. The bill, AB 3233, by Assemblywoman Dawn Addis, D-Monterey, which the industry staunchly opposed, overturns a state Supreme Court ruling from last fall. In that case, the justices ruled in favor of Chevron and nullified a ballot measure that Monterey County voters passed in 2016 to ban new oil and gas wells there over pollution concerns, saying that state regulations took precedent.

Newsom, who called a special session of the Legislature this month to address gas prices, was sharply critical Wednesday of oil companies, an industry that he has increasingly clashed with in recent years over pollution and climate change.

Southwest to cut back Atlanta air service

Southwest Airlines plans to eliminate about one-third of its flights to Atlanta next year to save money as it comes under pressure from a hedge fund investor to increase profits and boost the airline’s stock price.

The retreat in Atlanta, where Southwest is far smaller than Delta Air Lines, will eliminate more than 300 jobs for pilots and flight attendants, although they will have a chance to relocate, according to the company.

A Southwest official said Wednesday the airline needs to cut unprofitable routes, and “demand for Atlanta doesn’t support our level of flying.”

— From news services