Port Talbot Steelworks Strike Suspended After New Investment Proposed
Negotiations over the planned strike at the Port Talbot steelworks have resulted in a suspension of the industrial action by the Unite union. The decision was made following the announcement on Thursday that Tata, the Indian conglomerate owner, has agreed to close the site earlier than originally planned in response to the proposed investment.
According to the union, talks over the weekend led to a “significant development” as Tata agreed to discuss future investment in addition to redundancies. The closure date has now been moved to 7 July, just one day before the previously scheduled strike and approximately two months earlier than the September timeline initially announced for the closure of the final blast furnace used in steel production. This closure will result in the loss of up to 2,800 jobs, with 2,500 to be cut in the next year and an additional 300 in three years. Despite a £500m taxpayer cash injection to support the site’s transition to cheaper and greener steel production in order to reduce emissions, the closure of the first steel blast furnace was originally set for the end of June.
Unite’s secretary general, Sharon Graham, had previously stated that the strikes would continue until Tata halts its plans, calling them “disastrous”. An overtime ban had already been in effect since 17 June. However, both the strike and overtime ban have now been suspended for further discussions.
Another union representing Port Talbot steelworkers, Community, has welcomed the industrial action pause and the willingness of Unite to return to the negotiating table with other unions. Alun Davies, the national officer for Community, stated that Tata has agreed to resume discussions if the strike is called off. However, he also expressed regret over the lack of progress made since the last meeting on 22 May.
It has been confirmed by Tata that the final closure of the Port Talbot steelworks will now take place in September following the suspension of industrial action. A spokesperson for Tata stated that they have received written confirmation from Unite that they will be halting their current action and potential strike action. They also expressed relief at being able to avoid the early cessation of operations on Blast Furnace 4 and the wider heavy end in Port Talbot.
The spokesperson also confirmed that discussions with the UK Steel Committee will resume from the point reached in the last meeting on 22 May, with a focus on future investments and aspirations for the business. They clarified that there will be no renegotiation of the existing plan for the heavy-end closure or the enhanced employment support terms. The wind-down process for Blast Furnace 5 has already begun in preparation for the final iron production at the end of this week.
