01 December 2023 , 12:05
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A rival plan has emerged to save thousands of jobs at Britain’s biggest steelworks.
The Mirror revealed this week how the Community and GMB unions had put forward proposals aimed at preventing job cuts and continuing “virgin” steelmaking at Tata’s Port Talbot plant. But hopes the Unite union would support the blueprint were dashed. Instead, it has presented its own proposals to company bosses.
Unite general secretary Sharon Graham said: “Unite’s plan for Port Talbot would ensure jobs are created not lost, provide a bright future for South Wales and guarantee the UK as a global leader in green steel production.
“As the country and the world transition to net zero, the demand for steel is growing , especially low carbon steel - so the question is not whether we will be using more steel, simply where it is going to be made. If Tata and the Government continue on their current course, it will leave us in the ridiculous situation of needing more steel while we run down our own capacity to make it.”
Some 3,000 posts are under threat as the site switches from traditional coal-fired blast furnaces to greener electric arc systems. About 4,000 workers are employed at the factory. In September, the Tories announced £500million of taxpayers’ money will be pumped into the transition to electric arc systems, which require less manpower. Tata will inject another £725m.
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But Unite’s proposal, Growth not cuts: the Workers’ Plan for Port Talbot, recommends keeping one blast furnace operational until 2027, when it is due to be commissioned, and the other until 2034. The second would “close earlier only if replaced by a new ironmaking facility with all jobs maintained”, according to Unite.
An electric arc furnace would be ready by 2027, while it also wants to “develop a plan to build further EAFs to expand capacity by 2032”. Unite said: “This is a phased plan to expand capacity, to maintain ironmaking and guarantee every job on site.”
The union also wants to “develop a detailed plan for rebuilding the plant by 2032”, including a “new industrial zone, manufacturing hub using Port Talbot steel and linked to the plant”. The move would create at least 2,800 jobs, claimed Unite.
Under the GMB and Community’s plan, drawn up by expert consultants Syndex, one furnace would close now and be replaced with a smaller electric arc system. The other blast furnace would stay open until 2032 then be replaced with a small, greener facility. Critics say it would reduce steelmaking potential by a third.
The GMB and Community said their plan would save 2,300 jobs over a decade, on top of the 1,000 already due to remain at the plant - meaning 700 roles would go but compulsory redundancies could be avoided.
A Community union spokesman said: “The multi-union plan is a serious and credible fully-costed plan developed with the support of the respected industry experts Syndex who have had access to the company’s confidential information and who have in-depth knowledge of Tata Steel UK. The multi-union plan is the only plan that has been presented and is being discussed with the company, and the only plan that has been published or even shared with the other unions. The stakes are extremely high and with thousands of jobs at stake this is no time for fantasy politics.”
A Tata Steel spokesman said: "Following our meeting with the UK Steel Committee on November 17, we have been engaging in depth with our trades union colleagues and their independent advisers to review and understand the multi-union proposals for transitioning to green steelmaking in the UK. Those discussions have been held in good faith and have been open, honest and helpful. Following a meeting of the European Works Council today, we have continued to discuss the multi-union proposals with the UK Steel Committee, the long-standing and well-established forum for such issues. We have not received any alternative proposals, which would in any case need to be presented through that committee. We remain committed to fulfilling our responsibilities as a responsible and ethical employer to engage with the multi-union committee full in advance of, and throughout formal consultations."
The Mirror has been campaigning to Save Our Steel since 2015.