Anger at confirmation of steel job losses
Tata says it is pressing ahead with plans to close blast furnaces at its Port Talbot plant.
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Your support makes all the difference.Steelworkers were “angry and frustrated” after Tata confirmed plans to close blast furnaces at its biggest UK plant, with the loss of up to 2,800 jobs, sparking warnings of industrial action.
Opposition parties criticised the Government for not doing enough to save the British steel industry, while environmental campaigners said a lack of a forward thinking industrial strategy had left workers “high and dry”.
About 2,500 jobs could be lost in the next 18 months at the Port Talbot plant in South Wales, as Tata presses ahead with making steel more environmentally friendly, which needs a smaller workforce.
A further 300 roles could be affected in the next few years, which could include the potential consolidation and rationalisation of cold rolling assets in Llanwern, once the required investments are completed at Port Talbot.
Unions put forward alternative plans which would not have led to such drastic job cuts, but they were rejected, although some parts were accepted.
Tata said continued blast furnace production was “not feasible or affordable”.
Union officials raised the threat of industrial action after the company rejected their proposals for avoiding such heavy job losses.
Tata said in a statement: “Tata Steel will commence statutory consultation as part of its plan to transform and restructure its UK business.
“This plan is intended to reverse more than a decade of losses and transition from the legacy blast furnaces to a more sustainable, green steel business.
This plan is intended to reverse more than a decade of losses and transition from the legacy blast furnaces to a more sustainable, green steel business
“The transformation would secure most of Tata Steel UK’s existing product capability and maintain the country’s self-sufficiency in steelmaking, while also reducing Tata Steel UK’s CO2 emissions by five million tonnes per year and overall UK country emissions by about 1.5%.”
Tata said its proposed investment is supported by the UK Government, which has committed up to £500 million to enable the transformation.
The company plans to invest £750 million in the project, alongside funding for a “comprehensive support package” for affected employees, business restructuring and transition costs, as part of its long-term commitment to UK production.
A statement by the GMB and Community unions said thousands of jobs and the future of British steelmaking were at stake, adding: “It is an absolute disgrace that Tata Steel, and the UK Government, appear intent on pursuing the cheapest instead of the best plan for our industry, our steelworkers and our country.
“It’s unbelievable any Government would give a company £500 million to throw workers on the scrapheap, and our Government must re-evaluate its miserly offer to support investment at Tata Steel.
“Community and GMB do not accept Tata Steel’s rejection of the multi-union plan and confirmation they intend to press forward with their original devastating proposals.
“We will now consult our members on next steps and all options to protect jobs are on the table, including industrial action.”
Unite’s Wales secretary Peter Hughes said: “Our members are angry and frustrated and will do anything to preserve steel making at Port Talbot including taking industrial action.”
The union’s general secretary, Sharon Graham, said the union would use “everything in its armoury” to defend steelworkers, adding that Tata should be expanding steel production in the UK because of growing demand.
The Government said it was determined to secure a “sustainable and competitive” future for steel, adding there would be support for workers losing their jobs.
Tata said more than £130 million will be spent on measures including redundancy terms, skills retraining and help with jobseeking.
Labour leader Sir Keir Starmer told broadcasters: “The Government said it had a plan for steel. It transpires the plan involves thousands of redundancies. There’s a better plan, a multi-union plan, that the Government needs to look at again.”
Tony Bosworth, energy campaigner at Friends of the Earth said: “The world is moving towards green steel production but the UK Government’s lack of forward-thinking industrial strategy has left workers high and dry.”
T V Narendran, Tata Steel’s chief executive and managing director, said: “The course we are putting forward is difficult, but we believe it is the right one. Having invested almost £5 billion in the UK business since 2007, we must transform at pace to build a sustainable business in the UK for the long-term.
“Our ambitious plan includes the largest capital expenditure in UK steel production in more than a decade, guaranteeing long-term, high-quality steel production in the UK and transforming the Port Talbot facility into one of Europe’s premier centres for green steelmaking.
“We recognise this proposed restructuring would have a major impact on the individuals and communities concerned, whom we will support with dignity and respect.
“In consultation with our union partners, Tata Steel will offer a comprehensive support package to mitigate the impact of any anticipated job losses, including helping employees to retrain and find new jobs.
“We will continue our work with the UK and Welsh governments, trade unions and the community to help those who may be affected through the proposed transition.”