Unions have expressed their disappointment and concern after their efforts to prevent thousands of job losses at Tata Steel were rejected by the company. In January, Tata announced plans to cut up to 2,800 jobs in the UK, with the majority of those job losses taking place at the Port Talbot steelworks in South Wales. This decision was made following the company’s confirmation of their desire to close down the blast furnaces at the plant and replace them with electric arc furnaces, in an effort to reduce emissions and costs.
Representatives from GMB, Unite, and Community unions met with Tata counterparts at a London hotel on Thursday morning to discuss potential solutions. However, the GMB reported that Tata informed them of their decision to close the blast furnaces by the end of September, describing it as an “unwelcome but expected slap in the face.” Tata has consistently defended their £1.25bn investment as a means of securing the future of steelmaking in the UK, stating that it would not only protect jobs but also reduce carbon emissions by five million tonnes per year and potentially spark a green industrial revolution in South Wales.
Despite Tata’s assurances, it is now widely anticipated that the company’s operations will face strike action. Members of Community and the GMB are currently being balloted on whether to walk out over the proposed changes, while Unite members have already voted in favor of industrial action. The unions had urged Tata to consider an alternative plan that would increase productivity and safeguard jobs throughout the supply chain, rather than relying on the government-supported switch to “green steel.” They argued that Tata’s plans would result in the elimination of the UK’s last “virgin” steelmaking facility and leave thousands of employees without jobs for no valid reason.
Community general secretary Roy Rickhuss expressed his disappointment with Tata’s rejection of the multi-union plan, stating that it was a viable and ambitious alternative to the company’s detrimental proposal. He refuted Tata’s claims that the plan was too expensive, stating that it would have returned the company to profitability and that the additional capital needed could have been funded with an additional £450m from the government – a small amount compared to what other European countries are investing in their domestic steel industries. Rickhuss emphasized that even though Tata has made their decision, the unions will continue to fight for their jobs, the industry, and their communities.
Tata Steel’s chief executive and managing director, TV Narendran, commented on the outcome, stating that after carefully considering all options and consulting with union representatives over the past seven months, the company has decided to proceed with their proposed restructuring and transition. Narendran explained that their plan is the most viable option, in contrast to the unions’ plan, which they deemed unaffordable and with high operational and safety risks. He also assured that their proposal would secure the long-term future of the business and preserve the majority of jobs in the UK. Narendran added that they will continue to work with the trade unions over the next two weeks to reach an understanding on the future of the UK business and its impact on their employees. He also reiterated Tata Steel’s commitment to creating a low-CO2 steel business and a green industrial ecosystem in Wales and the wider UK, which would not only safeguard steel supplies but also provide economic opportunities for future generations.
