Tata Steel will confirm the loss of up to 3,000 steel jobs as part of a major restructuring at its Port Talbot plant in south Wales.
At a Tata Steel meeting in India to discuss the fate of the plant, directors are expected to announce the closure of the smelter’s two blast furnaces and coke furnaces and their replacement with electric arc furnaces that require fewer workers.
More than half of the current workforce of nearly 5,000 is expected to lose their jobs as a result of the plant restructuring. The company says its UK operations are losing £1m a day.
The announcement follows Tata’s agreement earlier this year with the UK government for £500 million in funding to install an electric arc furnace at the site. Switching to electric arc furnaces will significantly reduce CO2 emissions, produce cleaner “green steel” and make steel production more efficient. Ministers believe the deal will help secure other jobs in the UK steel sector.
Steel industry unions, who want the company to move more slowly to restructure the plant, reacted angrily, calling it “the starting signal for the collapse of the British steel industry.” Hundreds of jobs are also at risk at Britain’s Scunthorpe steelworks as ministers consider a multi-million pound bailout package for the company.
A Tata Steel UK spokesman said: “We hope to begin formal consultations with our employee representatives soon. During these discussions we will provide further information on our proposals for the transition to a decarbonised future for Tata Steel UK.
“We believe our £1.25 billion proposal to transition to green steel will secure the business in the long term, strengthen steel safety in the UK and contribute to the development of a green ecosystem in the region.
“We are committed to a meaningful information and consultation process with our union partners and will carefully consider all proposals presented.”
Roy Rickhus, general secretary of the steel union, called the announcement “disgraceful” and a “kick in the teeth” to loyal workers.
“We will never accept Tata and the government’s plan to close our steel plants and supply our plants with foreign steel, no matter how many years it takes to build the EAF. [electric arc furnace]. Closing our industry to import dirty steel from overseas and handing over our jobs and order books to foreign competitors is not a green plan and we will fight it with all our might.
“Syndex’s trade union experts have worked tirelessly to review the company’s plans and develop possible alternatives, and we are confident that we can both decarbonise steel production and achieve a just transition for the workforce.” “on the brink and are committed to working with unions and our experts to reach an agreement on how to proceed and avoid a major labor dispute.”
Charlotte Brampton-Childs, GMB steel commissioner, said: “Tata must step back from the brink, work with us to deliver better outcomes for its workforce and protect new steel production in the UK.”. If this plan remains unchanged, Tata and the British government will signal the demise of the British steel sector.
“This plan to close our iron and steel plants – while supplying our factories with foreign steel – will put us on a collision course with massive industrial unrest.”
Tony Brady, Unite’s national director for steel, said: “Tata and the government’s plan is a bad deal for the steel industry and we need to see them step back from the brink. There is a just transition for steel, and an alternative approach to steel will be the roadmap for that. If Tata wants to avoid a major labor dispute, it must work with unions.”
Source: I News
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