Tata Announces Earlier Closure of Port Talbot Steelworks Amid Strike Plans
Multinational conglomerate Tata has announced an earlier closure date for its Port Talbot steelworks in response to planned strike action by Unite members. The company has now set the final closure date for July 7th, instead of the previously announced date of September.
The decision to bring forward the closure was made due to Unite members planning to go on strike on July 8th. This move will result in the loss of 2,800 jobs, with 2,500 to be cut within the next year and an additional 300 in three years.
The closure of one of the steel blast furnaces at the end of this month is part of Tata’s efforts to reduce carbon emissions at the UK’s largest source of CO2. However, the second closure, which is now set to take place next month, will accelerate the end of the plant.
This move comes despite the UK government providing £500 million in taxpayer funds to support the transition of the site to greener and more cost-effective steel production methods.
The previous fossil-fuel-powered blast furnaces will be replaced by a single electric arc furnace. Labour, the main opposition party, had urged the company to postpone any closures until after the general election on July 4th. Senior Labour figures, including shadow Welsh secretary Jo Stevens, had requested that Tata wait for a potential Labour government so that fresh negotiations could take place.
Unite general secretary Sharon Graham stated, “Unite is fiercely fighting for the future of the steel industry. We have secured significant investment from the Labour party to safeguard jobs.” She also added that Tata’s decision is just one of many threats faced by the union and that they will not be deterred.
GMB, another major union, also expressed its support for the workers, stating that “Tata must reconsider this irreversible decision and ensure the protection of steelmaking assets. With a general election approaching, there is still potential for significant change.”
In response to Unite’s strike announcement, a spokesperson from Tata Steel stated that the decision was made unilaterally and that they will be taking legal action to challenge the validity of the ballot. They also added that if they are unable to safely operate their assets during the strike, they may have no choice but to pause or stop operations, which would have a significant impact on the supply chain.
The company has urged Unite to withdraw its strike action and consider their proposed memorandum of understanding, which includes various measures such as employee support packages, training, and skills development.
Wales First Minister Vaughan Gething has also expressed his concerns, stating, “We will not support the closure of both furnaces. This decision will cause great anxiety for the workers and their families, as well as the community. Urgent and genuine negotiations are necessary to ensure the safety of those on site and prevent lasting damage to Port Talbot, Wales, and the UK.”
