Full details of job cuts as deal struck for Tata's Port Talbot steel plant
Up to 3,000 jobs are set to be cut at Britain’s biggest steelworks.
The Government and Indian conglomerate Tata finally reached a deal for the Port Talbot plant to switch from traditional, coal-fired blast furnaces to less-polluting electric arc production.
Tata employs 8,000 people across Britain. The Business Department said: “It is expected that the proposal announced today – which remains subject to information and consultation processes led by Tata Steel – has the potential to safeguard over 5,000 jobs across the UK” - meaning 3,000 posts will go.
Visiting Port Talbot today, Business Secretary Kemi Badenoch claimed the pact was “good for the taxpayer, good for the workforce”. But Community steelworkers’ union assistant general secretary Alasdair McDiarmid fumed: “The Secretary of State’s assertion today that this is a good deal for the workforce is a fantasy.”
He added: “Putting all our eggs in the electric arc basket will come at the cost of thousands of jobs, our economic security and the independence of our industry. Tata and the Government should have consulted with the unions well in advance of the announcement and their failure to do so has put unnecessary worry on the workers at Port Talbot.”
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Ministers will pump in £500million of taxpayers’ money to back the transition, with Tata injecting £725m. The new furnaces are expected to be up and running within three years of regulatory and planning approvals. But because the greener production requires far fewer staff, an estimated 3,000 roles will be slashed across Tata's business - dealing another massive blow to the local economy. The firm will consult over a "potential deep restructuring", it is understood.
Trades Union Congress general secretary Paul Nowak said: “This is a devastating blow for workers at Port Talbot and the opposite of a just transition. Ministers must press pause and urgently get around the table with unions. It beggars belief that they have been locked out of talks. Instead of safeguarding livelihoods in the steel industry, this deal will see thousands of good, unionised jobs potentially lost forever. An electric arc furnace-only model for Port Talbot is simply the wrong approach for making our steel greener.”
Unite general secretary Sharon Graham said: “These plans are disgraceful, short sighted and lack ambition. Steel is a foundation industry and the opportunity is being missed to make the UK a world leader in steel production. Unite will be fighting tooth and nail not only to save these jobs but to create more jobs in steel.”
Shadow Business Secretary Jonathan Reynolds said: “Only the Tories could spend £500m of taxpayers’ money to make thousands of British workers redundant. Britain needs an industrial strategy that invests alongside industry delivering a return on taxpayers’ investment whilst protecting our national capabilities and workforce.”
Labour MP Stephen Kinnock, whose Aberavon constituency includes Port Talbot and who chairs the All-Party Parliamentary Group on Steel, said: “While investment to decarbonise our Port Talbot steelworks is necessary and long overdue, I am deeply concerned that the UK Government is failing to deliver the just transition to green steel that my hardworking constituents deserve, not least because ministers have failed to adequately consult steel unions Community and GMB.
“At the heart of this failure is the narrow focus on electric arc furnace technology which will not only result in more job losses than necessary, but which simply cannot produce the qualities and grades of steel needed to meet the full spectrum of Tata’s customer base.”
But the firm defended the transformation, which will take place over the next four years. Tata Steel’s chief executive TV Narendran said: “Tata Steel UK has been facing significant challenges due to the heavy-end facilities approaching their end of life. The proposed project, with one of the largest investments in the UK steel industry in recent decades, provides an opportunity for an optimal outcome for all stakeholders. We will undertake a meaningful consultation with the unions on the proposed transition pathway in the context of future risk and opportunities for Tata Steel UK. With the support of the UK Government and dedicated efforts of the employees of Tata Steel UK along with all stakeholders, we will work to transform Tata Steel UK into a green, modern future ready business.”
he Government trumpeted the deal, which came after months of negotiations. Mrs Badenoch said: “The UK Government is backing our steel sector, and this proposal will secure a sustainable future for Welsh steel and is expected to save thousands of jobs in the long term. This is an historic package of support from the UK Government and will not only protect skilled jobs in Wales but also grow the UK economy, boost growth and help ensure a successful UK steel industry.”
Gareth Stace, director-general of trade body UK Steel, said: “This is an important day for the UK steel sector. Government has confirmed its firm and bold commitment to the future of steelmaking here in the UK. The UK steel industry is committed to decarbonising by 2035. A year ago, the UK steel sector published an ambitious roadmap to net-zero. Today we take a significant step to realising that vision."
Britain’s £2.9billion steel sector directly employs 39,800 workers and supports another 50,000 in supply chains and local communities, according to latest figures from trade body UK Steel.
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The PM last week insisted steel is “absolutely vital to the UK”. He added: “We share the ambition of securing a decarbonised, sustainable and competitive future for the industry in this country.”
The Mirror has been campaigning to Save Our Steel since 2015.
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